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Skidmore Skid Loader operates a warehouse operation. He currently uses 1 2 0 , 0 0 0 sq ft of warehouse space to move 4

Skidmore Skid Loader operates a warehouse operation. He currently uses 120,000 sq ft of warehouse space to move 43,200 pallets of goods per month. If he can rent another 50,000 sq ft of warehouse space he thinks he can move 12,000 additional pallets per month.The net revenue is $25/pallet (selling price minus COGS minus labor, etc. but not including rent for the warehouse space). Skid can rent additional warehouse space for $5.00/sq ft. per month. Is Skid going to be using his warehouse space (sq ft) more efficiently or less efficiently if he rents the additional space? Explain with some economic terms

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