How Does Decision Making Under Profit-Maximization Compare with Benefit-Cost Analysis

Multiple Choice

How does decision making under profit-maximization compare with benefit-cost analysis?

A) Benefit-cost analysis is more comprehensive than profit-maximization since it includes the value of consumer surplus.
B) Even in the presence of externalities, profit-maximization leads to efficient outcomes, while benefit-cost analysis does not.
C) Profit maximization internalizes the cost of externalities unlike benefit-cost analysis.
D) A public program should be implemented on the basis of profit-maximization principles and not benefit-cost analysis.
E) Under profit-maximization, the benefits and costs from a program are usually overstated.