You have been asked to provide your consulting services to Sand Ltd, which studies whether to initiate or not the production of beach chairs in Greece. So far, the relevant market is covered by two companies: Sun Ltd and Sea Ltd. In 2018, the total number of beach chairs produced by Sun Ltd and Sea Ltd was 280 (thousands of beach chairs). The beach chairs average market price was 18. The average and marginal cost for Sun Ltd is 10 per chair. The respective costs for Sea Ltd are 12. The so-far market research suggests that the relevant markets inverse demand curve is linear, in the form =Q, =1+2, and that the two firms dominating the market compete on quantities.

If Sand Ltd were to initiate the production of beach chairs in Greece, its average and marginal cost would be 12. How would Sands Ltd entrance into the industry affect the price of beach chairs, assuming that competition will be Cournot-type?