Question economic

Two rms produce and sell differentiated products that are substitutes for each other. Their demand curves are Firm 1: Q1 =40 3P1+P2 Firm 2: Q2 = 40 3P2+ P1 Both firms have constant marginal costs of $3.90 per unit. Both firms set their own price and take their competitor's price as fixed. Use the Nash equilibrium concept to determine the equilibrium set oi prices. Since the rms are identical, they will set the same prices and produce the same quantities. In equilibrium. each firm will charge a price of $E| and produce El units of output. (Enter your responses rounded to two decimaiptaces.)