Company A Company B Rent and Utilities $5,000 $7,000 Materials $4,500 $7,500 Current Output 6,000 10,000 The owner of Company B is considering starting a price war with Company A to eliminate a smaller competitor in its industry. Would it be a wise decision for Company B to enter a price war with Company A? 

No, because Company A has more flexibility to increase output and lower costs. 

Yes, because Company B's cost structure allows it to lower prices further than Company A. 

No, because Company B cannot price low enough to force Company A to exit the industry. 

Yes, because Company B has greater market share than Company A