Back to Assignment Attempts Keep the Highest/2 1. Definition of economic costs Manuel lives in San Diego and runs a business that sells pianos. In an average year, he receives $704,000 from selling planos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Manuel does not operate this plano business, he can work as an accountant, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $3,000 per year rate. No other costs are incurred in running this plano business. Identify each of Manuel's costs in the following table as either an implicit cost or an explicit cost of selling planos. Implicit Cost Explicit Cost The wholesale cost for the planos that Manuel pays the manufacturer The salary Manuel could earn if he worked as an accountant O The rental income Manuel could receive if he chose to rent out his showroom 0 The wages and utility bills that Manuel pays Complete the following table by determining Manuel's accounting and economic profit of his piano business