Profit Maximization Is an Ambiguous Guide to Decision Making in the Private

Multiple Choice

Profit maximization is an ambiguous guide to decision making in the private sector because:

A) firms in the private sector usually do not aim at profit maximization.
B) the goal of profit maximization contradicts the goal of satisfying the firm's shareholders.
C) of the presence of risk and uncertainty.
D) profit-maximization ignores social costs and benefits.
E) None of the above answers is correct.