In a market where two firms are competing on price, what can each firm do to achieve a Nash Equilibrium through strategy adjustments?

In a market where two firms are competing on price, achieving a Nash Equilibrium means that both firms choose their prices in a way that neither can improve their situation by changing their price alone. Each firm needs to consider the price set by the other firm. For example, if Firm A lowers its price, Firm B might also lower its price to stay competitive. However, if both firms continuously lower their prices, they could end up with very low profits. To reach a Nash Equilibrium, each firm should find a price that allows them to maximize their profit while anticipating the price the other firm will set, often leading to stable prices where neither firm has an incentive to change.