Kenji lives in New York City and runs a business that sells guitars. In an average year, he receives $704,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Kenji does not operate this guitar business, he can work as an accountant and receive an annual salary of $20,000 with no additional monetary costs. No other costs are incurred in running this guitar business. Identify each of Jake's costs given below as either an implicit cost or an explicit cost of selling guitars. a. The wholesale cost for the guitars that Musashi pays the manufacturer
b. The rental income Musashi could receive if he chose to rent out his showroom
c. The salary Musashi could earn if he worked as a paralegal
d. The wages and utility bills that Musashi pays