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Question: gilberto lives in denver and runs a business that sells...

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Gilberto lives in Denver 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 Gilberto 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.Gilberto lives in Denver and runs a business at sells pianos. In an average year, he receives s723 ,000 trom selling planos. 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 recelve $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Gilberto 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 Identiry each of Gilbertos costs in the fowowing table as either an implcit cost or an explicit cost of seiling pianos. Implicit Cost Explicit Cost The salary Gllberto could earn it he worked as a financial advisor The wages and utility bills that Gilberto pays The wholesale cost for the pianos that Gilberto pays the manufacturer The rental income Gilberto could receive if he chose to rent out his showroom Compiete the following tabie by determining Gibertos accounting and economic profit of his piano business. Profit Accounting Profit Economic Profit Alternatively, the economic profit he would earn as a financlal advisor would be $ Ir Gilbertos goal is to maximize his economic profit, he stay in the piano business. True or false: Gilberto is earning a normal profit because his profit is positive. O True

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