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Two Beverage Firms Compete for Sales by Increasing Advertising

Question 43

Multiple Choice

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.

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