Explain clearly...

Pls explain on detail how to reach the answers and your process. {I already put the answer but explain how to reach it) Consider the model of the circular city of Salop. There are two rms that have been located equidistant in a circular city with perimeter 1 and decide the price simultaneously. Production costs are the same for each rm: c (q) = q - 1, where q is production. Transportation costs are linear: 22 d, where d is distance. It is the price that each firm will set according to the Nash equilibrium of the simultaneous game: P=$12