Which of the following describes the "collective action problem"?

Question

Quizplus · Accepted Answer

The collective action problem refers to the situation where individuals in a group have a common interest, but it is difficult to get them to act on that interest because they must bear the cost of action while the benefits are shared by all. In the context of the question, an individual stockholder spends time and resources monitoring managers, but the benefits of having better managers accrue to all shareholders, creating a collective action problem. Therefore, choice D is the best answer.

Which of the Following Describes the "Collective Action Problem