Only firms 1 and 2 produce a certain good whose aggregate demand curve is Y = 10 p. Assume the average variable cost of production is constant at 2 and common across firms.

1. The firms choose their quantities simultaneously and the price is determined from the inverse demand curve as the highest price at which the total quantity produced can be sold. Find the equilibrium of this simultaneous quantity setting or Cournot model. What will be the market price and each firm's profits at equilibrium?