Consider an industry with two firms. The firms face an (inverse) market demand function of the form P = 28 - Q where Q is the sum of the outputs produced by the two firms, i.e. Q = Q₁ +Q₂ where Q₁ denotes the output produced by Firm 1 and Q₂ denotes the output produced by Firm 2. Both firms have constant average and marginal cost of production equal to $4.