Unconstrained value-maximizing behaviour does not include consideration of:
A)the costs of owner-supplied inputs.
B)social benefits.
C)information costs.
D)explicit costs.

Question

Quizplus · Accepted Answer

Unconstrained value-maximizing behaviour only takes into account maximizing one's own profits or benefits, without considering any external factors such as social benefits or costs, information costs, or the cost of inputs provided by the owner. Unconstrained value-maximizing behaviour only considers maximizing individual benefits and does not take into account social benefits, which are externalities that affect others in society. Therefore, option B - social benefits - is not considered in unconstrained value-maximizing behaviour. The other options listed (A, C, and D) are all factors that could be taken into account in the decision-making process.

Unconstrained Value-Maximizing Behaviour Does Not Include Consideration Of