Two beverage firms compete for sales by increasing advertising. This competition and expenditures on advertising increase the number of sales for the whole industry and they both post high profits. This is an example of
A) a zero-sum game.
B) a positive-sum game.
C) a negative-sum game.
D) none of the above.

Question

Quizplus · Accepted Answer

This scenario is an example of a positive-sum game, where the actions of the firms (increasing advertising) result in a situation where both firms benefit through increased sales and profits, indicating that the total 'pie' has grown larger for both parties involved.

Two Beverage Firms Compete for Sales by Increasing Advertising