Which of the Following Describes the "Collective Action Problem

question 26

Multiple Choice

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

• A) When a CEO fails to represent the interest of shareholders in daily decisions of the firm.
• B) When the shareholders of a firm fail to act in their own best interests.
• C) When the managers of a firm lack incentive to maximize shareholder wealth.
• D) When an individual stockholder spends time and resources monitoring managers, bearing the cost, while the benefits go to all the shareholders in the firm.

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Definitions:

Human Retina

The light-sensitive layer at the back of the eye that contains cells (rods and cones) which convert light into neural signals for vision.

Wavelength

The distance between successive peaks of a wave, often used to describe the physical property of light, sound, and other waves.

Dark Adaptation

The process by which the eyes become more sensitive to light in low illumination, improving the ability to see in darkness.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and are responsible for perceiving color and fine detail.