Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks. Funsters should   A.) “fight fire with fire” by decreasing supply of its doll for six weeks and then increasing the supply. B.) increase the supply of its doll now before the other doll hits the market. C.) increase the price of its doll now. D.) discontinue its doll.

Question
Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks. Funsters should
 

A.) “fight fire with fire” by decreasing supply of its doll for six weeks and then increasing the supply.
B.) increase the supply of its doll now before the other doll hits the market.
C.) increase the price of its doll now.
D.) discontinue its doll.

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