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Q: Would the cost of debt increase if the risk-free rate increases?
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Provision in a labor contract that ties pay raises to increases in productivity and the cost of living?

escalator clause The escalator clause said that wages would increase based upon increases in productivity and in the cost of living.


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Gas prices increase when the demand increases compared to the supply, or when the cost of oil increases (due to demand, or if raised arbitrarily by the producers).


If average cost increases does marginal cost increase?

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If a risk-free rate increases what impact would it have on the cost of equity?

It would increase the cost of equity: re=rf + b*(RP) re is the cost of equity rf is the risk free rate b is the beta of the stock RP is the risk premium of the stock


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Business IT support should save time for all other divisions of the business. This would increase productivity in the business as routine task can be performed quicker. This would increase the profits of the business - unless the IT support cost more than the technology increases the business.


Indicate how each of the following would shift 1. the marginal cost curve 2. the average variable cost curve 3. the average fixed cost curve and 4. the average total cost curve of a manufacturing firm?

a. Property taxes are fixed costs, so this would decrease AFC, which in turn decreases ATC.b. Wages are typically variable costs, so this would increase both MC and AVC, which in turn increases ATC.c. Electricity is typically a variable cost, so this would decrease both MC and AVC, which in turn decreases ATC,d. Insurance is a fixed cost, so this would increase AFC, which in turn increases ATC.


How would you calulate your increase on social security If you are already receiving it and also working?

Increases are only given yearly. For the average cost of living expenses. You need to call your rep.


Is there a raise for disabled veterans in 2010?

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What are the disadvantages of share capital?

Disadvantage of share capital is that it increases the risk of default which causes the increase in cost of capital.