Two firms compete to supply identical widgets to 6 buyers that value a single widget at $10. No buyer wants more than one widget. Each firm has a capacity of 6 units. So, it costs $2 to make one widget, $7 to make 2 widgets, $15 to make 3, etc. Assume the firms must announce prices once and do so simultaneously. If each firm employs the identical technology, what will the equilibrium price of each firm be?
