Most Successful Large Organizations Circumvent the Collective Action Problem by Offering

question 18

Multiple Choice

Most successful large organizations circumvent the collective action problem by offering "selective incentives," which are ______.

• A) benefits available to everyone regardless of membership in the group
• B) in essence, the threat of some consequence to the group whenever an individual defects
• C) benefits that can be denied to individuals who do not join and contribute
• D) the foundation of the rationale behind free riding

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Definitions:

Gain

An increase in wealth, assets, or value, often resulting from investment or business operations.

Lose

To be deprived of something one once had or to fail to win in a competition or conflict.

Breakeven

The point at which total cost and total revenue are equal, meaning no net loss or gain is incurred by the business.

Cost to Play

The initial investment or expense required to enter a market, participate in a game, or start a new venture.