3. Consider the following statement: "It /s very difficult and expensive for companies to produce high-quality goods and services. But consumers want high-quality products at low prices, and they expect far too much from companies in terms of product quaffty, given the price they Btl1 willing to pay. Consumers should be more realistic In their expectations." Do you agree or disagree with the statement? Explain your reasoning. In September 2006, the U.S. Federal Aviation Administration (FAA) gave airlines until March 2008 to inspect a certain bundle of wires located near the main landing gear In all M0- 80 airliners, and, if improperly secured, to repair the bundle. Eighteen months later, some 250 000 travellers found themselves stranded as American Airlines grounded its fleet of MD-80s and cancelled nearly 3300 flights In a hurried effort to comply with the FAA directive.

How could the United states' largest carrier make such a costly and seemingly avoidable mistake? Shortly before the deadline to repair the wiring, the FAA was embarrassed by revelations that another carrier, Southwest Airlines, had violated federal regulations by flying planes that had missed their scheduled inspections. Suddenly, the FAA found itself under fire from the U.S. Congress for failing to keep closer tabs on airlines. It is not surprising, then, that the FAA became extra vigilant in inspecting the MD-80s--more vigilant, It seems, than carriers such as American had come to expect.