Final answer:
Clara is engaging in developing a business plan for her cafe, a plan that will include both explicit and implicit costs. She needs to factor in the opportunity cost of foregone salary, similar to how Eryn needs to consider the salary she would miss out on by opening her practice. Such calculations help determine the true profit and sustainability of Clara's entrepreneurial venture.
Step-by-step explanation:
Clara is currently engaged in developing the business plan for the cafe. When someone like Clara decides to open her own business, they must consider both the explicit and implicit costs involved in this venture. The $15,000 left to her by her grandmother will help with the explicit costs, such as hiring a professional team for the cafe's layout. However, implicit costs, like the potential earnings from another job that she has to forego to run her cafe, must be accounted for to calculate her true accounting profit.
Just like in Eryn's case where she has an accounting profit of $115,000 but faces an implicit cost since she would have to quit her job with an annual salary of $125,000, thus effectively losing $10,000 per year. Nevertheless, this does not necessarily mean that opening the cafe is a bad decision. It is just a factor that needs to be considered in the business plan along with the pursuit of entrepreneurial success and assessing one's own comparative advantages in the market.