The market for breakfast cereal in a region is dominated by a single firm, Company A, producing a single kind of cereal, Cereal A. A new company, Company B, then enters the market, producing Cereal B. Cereal A is very healthy and bland, whereas Cereal B is very sugary and delicious, so the two cereals appeal to different consumers. Cereal B is priced at $3 per box, and Company A lowers the price of its cereal to $2.85 per box in response. What is likely to happen to the market for breakfast cereals over time? Company A and Company B will engage in a price war until prices are driven down to the marginal cost of each cereal, Company B will definitely exit the market in response to Company A's price cutting tactics, Both companies will earn profits as some consumers will prefer Cereal B while others continue to purchase Cereal A, or Company A will change Cereal A to be more sugary and delicious in response to Company B's entry