1. Definition of economic costs Antonio lives in Calgary and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totalling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Antonio does not operate this boat business, he can work as an accountant and receive an annual salary of $34,000 with no additional monetary costs. No other costs are incurred in running this boat business. Identify each of Antonio's costs in the following table as either an implicit cost or an explicit cost of selling boats. Implicit Cost Explicit Cost The wages and utility bills that Antonio pays O O The wholesale cost for the boats that Antonio pays the manufacturer O O The rental income Antonio could receive if he chose to rent out his showroom O O The salary Antonio could earn if he worked as an accountant O O Complete the following table by determining Antonio's accounting and economic profit of his boat business. Profit (Dollars) Accounting Profit Economic Profit True or False: Antonio is earning a normal profit. O False True