Savings, Salaries, and Slawsa
Season 5, Episode 9: In this clip, Julie Busha explains how she and her husband saved a large sum of money so they could successfully launch Slawsa, a new condiment that is a cross between coleslaw and salsa. Mark Cuban commends her on this and discusses how it’s nice to see someone giving up a little bit now to have more in the future. This is a classic PPF example of future vs. current consumption. The entrepreneur also discusses how she is not taking a salary at this time because she wants to focus her time, energy, and resources into the business. This nicely illustrates the idea of opportunity costs, which are classified as implicit costs in business production decisions. Ask students if this means that she is really working for free and engage them in a discussion of other potential implicit costs.
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