& C ) https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=58135382196215911141944988teISBN=978133... 4 # CENGAGE | MINDTAP Homework: Production and Costs (Ch 21) 3. Definition of economic costs costs are incurred in running this boat business. @ o ' J Homework: Production and Cos! X \" % MindTap - Cengage Learning X u Course Hero Jake lives in Chicago and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a financial advisor and receive an annual salary of $50,000 with no additional monetary costs. No other Identify each of Jake's costs in the following table as either an implicit cost or an explicit cost of selling boats. Q search this course Profit (Dollars) Accounting Profit :] Economic Profit :] 50F s & - ' Sunny '= Q search e i L Q = & Impii:fit Cost Explicit Cost The rental income Jake could receive if he chose to rent out his showroom O O The wages and utility bills that Jake pays O O The salary Jake could earn if he worked as a financial advisor O O The wholesale cost for the boats that Jake pays the manufacturer O O Complete the following table by determining Jake's accounting and economic profit of his boat business. 5 = b & L @ X 2 O w PRE Homework: Production and Cost: X MindTap - Cengage Learning X Course Hero x + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&elSBN=978133... A" CJ CENGAGE | MINDTAP Q Search this course ? Homework: Production and Costs (Ch 21) X The rental income Jake could receive if he chose to rent out his showroom O O The wages and utility bills that Jake pays O O The salary Jake could earn if he worked as a financial advisor O O A-Z E The wholesale cost for the boats that Jake pays the manufacturer O O EI Complete the following table by determining Jake's accounting and economic profit of his boat business. + Profit (Dollars) bongo Accounting Profit Economic Profit Alternatively, the economic profit he would earn as a financial advisor would be $ If Jake's goal is to maximize his economic profit, he stay in the boat business. (? A+ True or false: Jake is earning a normal profit. should should not O True O False Grade It Now Save & Continue 50OF Q Search 5:55 PM Sunny 3/24/2024