In a Zero-Sum Game

question 134

Multiple Choice

In a zero-sum game

• A) both players can lose.
• B) the number of players is zero.
• C) both players can win.
• D) one player gains only when another player loses.
• E) both players get zero gains.

---

Definitions:

Contribution Margin

The amount by which a product's sales price exceeds its variable costs. It contributes to covering fixed costs and generating profit.

Variable Costs

Expenses that change in proportion to the level of production or sales activity.

Contribution Margin

The difference between the sales revenue of a product and the variable costs associated with its production and sales.

Unit Contribution Margin

The amount that the sale of one unit contributes towards covering fixed costs, calculated as the sales price per unit minus variable costs per unit.