In this question, we're being asked whether it be sensible for company A to start a price war with company B. I know that fixed costs such as rent and utilities, won't change regardless of how many units are sold. I'm not sure how we'd be able to figure this question out.

23) The table below shows fixed and variable costs per unit for an ice cream shop, "Company A," and its local competitor, "Company B." Company A Company B Rent and Utilities $1.25 per cone $1.50 per cone Ingredients $1.00 per cone $0.75 per cone Current Daily Output 1000 ice cream cones 700 ice cream cones Costs for rent and utilities are fixed by contract, and the two shops produce the same flavor of ice cream. The owner of Company A is considering lowering the price of its ice cream, starting a