What is explicit cost and implicit cost in economics with example in English

Implicit cost, on the other hand, represents the opportunity cost of using resources that the firm already owns. These costs are not directly paid but are forgone earnings or benefits from the next best alternative use of those resources.

Example:
Imagine you own a small bakery.

Explicit costs would include:

• The wages paid to your employees.
• The cost of flour, sugar, and other ingredients.
• The rent for your shop space.
• The electricity and water bills.

Implicit costs would include:

• The salary you could have earned if you worked elsewhere instead of running your bakery.
• The interest you could have earned if you had invested the money used to start the bakery in stocks or bonds.
• The profit your bakery could have made if you had rented out your shop space to someone else.