A Convenience Store Is Considering Renting a Surveillance Camera from a Security

question 114

Multiple Choice

A convenience store is considering renting a surveillance camera from a security company that would prevent $100 in shoplifting per year. The yearly rental rate for the camera is $150. To maximize profits, the firm should

• A) rent the camera because the firm wants to completely eliminate shoplifting.
• B) not rent the camera because the rental rate exceeds the value of shoplifting prevented.
• C) rent the camera if VMP exceeds MRP , but not rent the camera if VMP is less than MRP .
• D) Without knowing the rate of diminishing marginal returns, there is not enough information to answer the question.

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Definitions:

Normal Fault

A type of fault where the hanging wall has moved downward relative to the footwall, typically associated with extensional tectonics.

Horizontal Compression

A stress regime where forces push inwards from opposite sides, often leading to folding, faulting, or shortening of the Earth's crust.

Horizontal Tension

The stress exerted in a horizontal direction, often leading to stretching and thinning of the crust.

Confining Pressure

The pressure applied to a rock from all directions beneath the Earth's surface, often affecting the rock’s physical properties and deformation.