1. Definition of economic costs Bob lives in Miami and operates a small company selling drones. On average, he receives $694,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $392,000. He also pays several utility companies, as well as his employees wages totaling $289,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $2,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Bob does not operate the drone business, he can work as a programmer and earn a yearly salary of $20,000 with no additional monetary costs, and rent out his storefront at the $2,000 per year rate. There are no other costs faced by Bob in running this drone company. Identify each of Bob's costs in the following table as either an implicit cost or an explicit cost of selling drones. Implicit Cost Explicit Cost The salary Bob could earn if he worked as a programmer O O The wholesale cost for the drones that Bob pays the manufacturer O O The wages that Bob pays O O The rental income Bob could receive if he chose to rent out his showroom O O Complete the following table by determining Bob's accounting and economic profit of his drone business. Profit (Dollars) Accounting Profit Economic Profit Grade It Now Save & Continue