Jacques lives in Detroit and operates a small company selling bikes. On average, he receives $773,000 per year from selling bikes. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $452,000. He also pays several utility companies, as well as his employees wages totaling $277,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $3,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Jacques does not operate the bike business, he can work as a nurse and earn a yearly salary of $32,000 with no additional monetary costs, and rent out his storefront at the $3,000 per year rate. There are no other costs faced by Jacques in running this bike company. Identify each of Jacques's costs in the following table as either an implicit cost or an explicit cost of selling bikes. Implicit Cost Explicit Cost The wages that Jacques pays The wholesale cost for the bikes that Jacques pays the manufacturer The rental income Jacques could receive if he chose to rent out his showroom. The salary Jacques could earn if he worked as a nurse O οοιοο

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