Suppose that the market for batteries installed in electric vehicles is dominated by just two firms. Further let us assume that all batteries produced are sold at the market-clearing price which depends on the TOTAL industry output. The market demand was estimated to be P = 27 - QTOTAL , where P is the market price in thousands of dollars and QTOTAL is the combined output of two firms in millions of units. The only decision variable for each firm is how many batteries to produce. Each firm must decide whether to build a plant suited to produce high volume, low volume, or to produce no batteries at all. Once the output decision is made, it is final. Regardless of the volume of production, each battery costs a firm 6 thousand dollars to produce