What you’ll learn to do: differentiate between explicit and implicit costs, accounting, and economic profit.
If you are interested in someday starting your own restaurant, you’ll definitely need to prepare for explicit costs—the obvious costs of paying rent, buying ingredients, paying your staff, etc. What will be less obvious and harder to measure, however, will be the implicit costs—the sleepless nights you spend working on the design, the salary you don’t make right off the bat, and the ingredients you experiment with to create your special sauce. In this section, you’ll learn more about these types of costs.
The learning activities for this section include:
- Reading: Explicit and Implicit Costs
- Self Check: Explicit and Implicit Costs
Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.