If a firm wants to buy a piece of capital equipment, is this firm ...

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If a firm wants to buy a piece of capital equipment, is this firm a demander or supplier in the financial market?
 
  What will be an ideal response?

Question 2

What are explicit costs? What are implicit costs?
 
  What will be an ideal response?

[juliaf]

Answer to Question 1

A financial market is where firms get the funds to buy capital. So, if the firm wants to buy a piece of capital equipment, the firm will be looking for funds to borrow. Hence the firm is a demander in the financial market.

Answer to Question 2

Explicit costs are costs that are measured in dollars and that typically involve some exchange of money. Implicit costs are costs that do not involve an exchange of money.

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Excellent

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