Hubert lives in Detroit and operates a small company selling drones. On average, he receives $721,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $421,000. He also pays several utility companies, as well as his employees wages totaling $260,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $21,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Hubert does not operate the drone business, he can work as a programmer and earn a yearly salary of $24,000 with no additional monetary costs, and rent out his storefront at the $21,000 per year rate. There are no other costs faced by Hubert in running this drone company.

Identify each of Hubert's costs in the following table as either an implicit cost or an explicit cost of selling drones.

	Implicit Cost	Explicit Cost
The wholesale cost for the drones that Hubert pays the manufacturer
The wages that Hubert pays
The salary Hubert could earn if he worked as a programmer
The rental income Hubert could receive if he chose to rent out his showroom

Complete the following table by determining Hubert's accounting and economic profit of his drone business.

	Profit
(Dollars)
Accounting Profit
Economic Profit

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