True/False Questions 1. The goal of shareholder wealth maximization implies that

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True/False Questions

1. The goal of shareholder wealth maximization implies that managerial decisions maximize only the current quarter's expected profits of the firm.

2. It is impossible for marginal profits to decline, when average profits are postive.

3. Partial defferentiation is used when differentiating equations of only one variable.

4. We would expect the cross price elasticity between propane gas and fuel oil used for home heating to be negative.

5. Adding more variables to an equation cannot reduce the coefficient of determination.

6. Using 5 years of monthly data, we can use at most 11 monthly dummy variables to find a seasonal pattern.

Explanation / Answer

true

false

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true

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true

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