Which of the following is a reason why a firm may not maximize profits?
A) Firms have limited resources and so must make imperfect decisions.
B) Profit maximizing price and output level is often very difficult to determine.
C) Managers may be more interested in maximizing their salaries, rather than profits.
D) Firms do not know exactly what their marginal revenue and marginal cost curves are.
E) All of the above.
Correct Answer:
Verified
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