Increased interest group membership allows the organization to do which of the following?

• A. Guarantee higher profits for all members
• B. Reduce its overall costs of operation
• C. Eliminate the need for collective action
• D. Exert greater influence on policymakers

Answer: (D)

Verified step by step guidance

1. Understand the role of interest groups in microeconomics: Interest groups aim to influence policymakers to enact policies favorable to their members.
2. Recognize that increasing membership typically strengthens the group's bargaining power and political influence because it represents a larger constituency.
3. Analyze why increased membership does not guarantee higher profits for all members, as profits depend on market conditions and policies, not just group size.
4. Consider that while larger membership might help spread costs, it does not necessarily reduce the overall costs of operation due to coordination and management complexities.
5. Note that collective action problems often persist regardless of size, so increased membership does not eliminate the need for collective action but can enhance the group's ability to exert influence.