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

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.