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

Question

Quizplus · Accepted Answer

The "collective action problem" refers to a situation where individuals or groups have a shared interest but face difficulties in coordinating their actions to achieve that interest. In the case of a firm, this can occur when individual shareholders have an incentive to free-ride on the efforts of others to monitor the firm's management, resulting in a lack of effective oversight and accountability. Therefore, option D, which describes the difficulty faced by an individual stockholder who spends resources to monitor managers but bears the cost alone, is the most accurate description of the collective action problem in the context of the question.

Which of the Following Describes the "Collective Action Problem