There Are Problems with Using the "Profit Maximization" Criterion

question 30

Multiple Choice

There are problems with using the "profit maximization" criterion. Which of the following is (are) correct?
I. Profit maximization has an ambiguous definition of "maximizing profits."
II. Profit maximization fails to consider the risks associated with alternative decisions.

• A) Only statement I is correct
• B) Only statement II is correct
• C) Both statements I and II are correct
• D) Neither statement I nor II is correct