Two firms produce and sell differentiated products that are substitutes for each other. Their demand curves are: Firm 1 Q₁ = 40 - 3P₁ + P₂ and Firm 2 Q₂ = 40 - 3P₂ + P₁

Both firms have constant marginal costs of $4.20 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 of prices. Since the firms are identical, they will set the same prices and produce the same quantities.

In equilibrium, each firm will charge a price of $ ___ and produce ___ units of output. Each firm will earn a profit of $___. (All answers rounded to four decimal places.)