The article explores how companies with limited production capacity and different costs compete on prices. They found that firms with varying costs can still reach a fair pricing equilibrium, but their price ranges may not overlap. This means that firms may have different strategies for pricing and competing. The study also shows that in certain scenarios, a company with lower costs may have more incentive to push out its competitor from the market. Additionally, the research highlights how tariffs and quotas can have significant impacts on domestic markets when there is competition between local and foreign companies.