3. Definition of economic costs Paolo lives in Houston and runs a business that sells pianos. In an average year, he receives $723,000 from selling pianos. 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 chooses 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, if Paclo does not operate this piano business, he can work as a financial advisor and receive an annual salary of $20,000 with no additional monetary costs. No other costs are incurred in running this piano business. Identify each of Paolo's costs in the following table as either an implicit cost or an explicit cost of selling pianos. Implicit Cost Explicit Cost The wholesale cost for the pianos that Paolo pays the manufacturer O O The wages and utility bills that Paclo pays o O The salary Paolo could earn if he worked as a financial advisor O O O O The rental income Paolo could receive if he chose to rent out his showroom Complete the following table by determining Paolo's accounting and economic profit of his piano business., Profit (Dollars) Accounting Profit \\:\\ Economic Profit \\:\\ Alternatively, the economic profit he would earn as a financial advisor would be . If Paolo''s goal is to maximize his economic profit, he w stay in the piano business. True or false: Paolo is earning a normal profit because his profit is positive. O True ) False