Du and Etisalat Are Two Telecom Companies in the UAE

Du and Etisalat are two telecom companies in the UAE. It would be relatively easy for them to go on a long series of price wars because ________?

A) The fixed costs in the telecom industry are very low, leading to a high marginal cost of adding a new subscriber.
B) In the telecom industry, variable costs are very low making the marginal cost of adding a new subscriber low.
C) The UAE government supports price wars.
D) None of the above.