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

question 14

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.

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Definitions:

Implied Assumption

An unstated understanding or expectation within an agreement or contract, often derived from the actions of the parties or the context of the agreement.

Expressly Agrees

A term indicating that a party has explicitly consented to an agreement or condition, leaving no doubt about their intention.

Assumption Of Risk

A legal defense that claims an individual knowingly and voluntarily assumed the risks inherent to a dangerous activity or condition.

Negligence Lawsuit

A legal action brought against an individual or entity for causing harm through careless actions or a failure to act when there was a duty to do so.