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:

Leadership Style

The characteristic approach and manner in which a leader directs, motivates, and manages their team or organization.

LPC Score

A measure in the Fiedler contingency model that evaluates a leader's least preferred coworker to determine their leadership style as either task-oriented or relationship-oriented.

Task Structure

The way in which a job or task is organized, designed, and structured, including clarity, complexity, and the specified way to complete the task.

Job Enrichment

A method to motivate employees by giving them more responsibilities and opportunities to grow in their position, enhancing both satisfaction and performance.