Question: Consider the following two options: ( 1 ) Construct a 1 0 , 0 0 0 sq . ft . of private warehouse and rent

Consider the following two options: (1) Construct a 10,000 sq. ft. of private warehouse and
rent public warehouse as needed.
(2) Do not construct a private warehouse, and use only public warehouse.
What are the annual costs for each option, and which one has a lower annual cost?

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