One Argument Against Using a Profit-Sharing Scheme Is the Potential

One argument against using a profit-sharing scheme is the potential for free-riding. In this situation, free-riding refers to

A) one firm using the same contract specifications as another firm.
B) a worker not providing effort because his contribution to profit is very small.
C) a worker not providing effort because he doesn't want his co-workers' wages to increase.
D) the firm not honestly reporting its profits.
E) profits being insensitive to worker effort because all increases in profit are returned to the workers due to the profit-sharing scheme.

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