After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (benefits included) of $40,000. The other option is to use $6,000 in savings to start your own consulting firm. You could earn an interest return of 6 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your total includes $14,000 in rent, $1,200 in office supplies, $24,000 for office staff, and $4,000 in telephone expenses.
What are your total explicit cost and total implicit costs?