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.

Answer 1

B. increase the supply of its doll now before the other doll hits the market

Step-by-step explanation:

Funsters Inc. should increase supply of it´s popular doll now before the doll of Toysorama company hit the market at low price. This will give first mover advantage to Funsters Inc., Which will help the company to grab market share and gain revenue from the market before other company launches its doll. Competition in the market can be handled by taking first step.