Question

Which situation is the best example of a zero-sum game?

Answer 1

D) “Every purchase you make at a chain store is sale that a local small business misses out on.”

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Answer 2

The correct answer is option D) “Every purchase you make at a chain store is sale that a local small business misses out on.”

A zero-sum game in this example represents the following situation: if the amount of sales increases for a chain store, then the amount of sales will equally decrease in a small store.

Let’s take the example of a cake. The complete cake represents the total amount of sales in the market. If the chain store takes a big piece of “cake”, then the rest of it is divided into the rest of the small stores.

In the other options provided, the zero-sum game mathematical process does not apply.