1. Explain why: a. Time spent for accepting new students,The use of teacher's own laptop, Time spent training new baker, and The use of owner's car are implicit costs. b. Why Purchase of office equipment, Teachers' payroll, Purchase of ingredients, and Bakers' payroll are explicit costs.

2. Explain why Cost of installing display shelves, Hiring bonus to a new employee, Cost of installing sewing machines, and Cost of selling old sewing machines are sunk costs.