Managers of Two Competing Oligopoly Firms, Amazon and Nile, Must

Managers of two competing oligopoly firms, Amazon and Nile, must make their pricing decisions simultaneously. Amazon (A) and Nile (N) face the following demand and long-run cost conditions, which are common knowledge to the managers: The prices, and , are the prices charged by Amazon and Nile, respectively. The quantities, and , are the respective daily quantities sold by each firm. The figure below shows Nile's best-response curve, . Only one point on Amazon's best-response curve, point K, is shown in the figure.
-Point C is not likely to be the decision outcome because it is not _______________ _____________, and either firm could unilaterally ___________ (increase, decrease) its price and earn greater daily profit.