Q Search this course Homework (Ch 13) X 1. Definition of economic costs Hubert lives in San Francisco and runs a business that sells planos. In an average year, he receives $726,000 from selling planos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $426,000; he also pays wages and utility bills totaling $264,000. He owns his showroom if he chooses to rent it out, he will receive $13,000 in rent per year. Assume that the value of this showroom does not deprecate over the year. Also, if Hubert does not operate this plano business, he can work as a paralegal, receive an annual salary of $22,000 wth no additional monetary costs, and rent out his showroom at the $13,000 per year rate. No other costs are incurred in running this plano business Identify each of Hubert's costs in the following table as either an mpert cost or an explieve cost of selling manos Implicit Cost Explicit Cost The rental income Hubert could receive the chose to rent out his showroom The wholesale cost for the pianos that Hubert pays the manufacturer The wages and utility bills that Hubert pays OO O O The salary Hubert could earn if he worked as a paralegal Complete the following table by determining Hubert's accounting and economic profit of his pano business Profit (Dollars) Accounting Profit Economic Profit Grade It Now Save & Continue