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Two firms, A and B compete for clients using price. Each firm has a fixed cost of 120 and a variable cost of 8x;, where

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Two firms, A and B compete for clients using price. Each firm has a fixed cost of 120 and a variable cost of 8x;, where x; indicates how many clients firm i = A or B has. Assume A has 25 clients and B has 195 clients. In this case, the lowest price firm A can afford to charge per client is and for B, the lowest price is 12.8: 8.62 12.8: 9.26 8.96; 9.26 8.96: 8.62

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