Both firms decided to increase advertising and, as a result, more customers were attracted to the market and both firms posted higher profits. This is an example of zero-sum-game.

Question

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In a zero-sum game, one party's gain is exactly balanced by another party's loss. In this scenario, both firms benefit from increased advertising, indicating a positive-sum situation where both parties gain, not a zero-sum game.

Both Firms Decided to Increase Advertising And, as a Result