3. Definition of economic costs Manuel lives in San Diego and runs a business, that sells boats. In an average year, he receives $842,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Manuel does not operate this boat business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this boat business. Identify each of Manuel's costs in the following table as either an implicit cost or an explicit cost of selling boats. The wholesale cost for the boats that Manuel pays the manufacturer The rental income Manuel could receive if he chose to rent out his showroom The salary Manuel could earn if he worked as an accountant The wages and utility bills that Manuel pays Implicit Cost Explicit Cost 0