Choose a small local firm (that is, not a chain or branch of a larger firm) or a single product from a larger firm. Consider the establishment of that firm or product and identify and describe the costs associated with the firm or product.

In the description of the costs, mention whether they are implicit or explicit costs and whether they are potentially 'hidden costs' or sunk costs.

How would you go about determining the amount of the costs, particularly for the implicit costs?

You may need to make several assumptions throughout the paper. Be sure to state those assumptions. Alternatively, analyze the different cases--for instance if capital has to be raised, that could be through a bank loan, from personal finances, or from finding business partners. Each one of these would have different costs that you could discuss (note that the money itself--the items it is used to purchase are costs and counting the money would result in a double count of money. But the interest paid or forgone would be a cost. And there would be other costs for bringing in business partners...what would be given up in that case?)