1. Definition of economic costs Jake lives in Detroit and runs a business that sells guitars. In an average year, he receives $723,000 from selling guitars of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totaling $267,000. He owns his showroom; if he choses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, I Jake does not operate this quitar business, he can work as a financial advinor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this quitar business, Identity each of Sake's costs in the following tabia as either an implicit cost or an explicit cost of selling quitars Implicit Cost Explicit Cost The Wholesale cost for the guitars that take pays the manufacturer The wages and utility bills that takes The salary uke could samt he worked as a financial advisor The rental income the could receive if he chose to rent out his showroom Cheb Identify each of Jake's costs in the following table as either an implict cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The wholesale cost for the guitars that Jake pays the manufacturer The wages and utility bills that Jake pays The salary Jake could earn if he worked as a financial advisor The rental income Jake could receive if he chose to rent out his showroom . Complete the following table by determining takes accounting and economic profit of guitar business Profit (Dollars) Accounting Profit Economic Profit Grade Now Save & Continue