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.


b

Economics

You might also like to view...

The supplier of your ________ is most likely a monopoly

A) shoes B) toothpaste C) textbooks D) home electricity

Economics

Why did Goldman Sachs and Morgan Stanley seek to become financial holding companies in October 2008?

What will be an ideal response?

Economics

As long as a person had to pay a positive price for a good, he would never consume to the point where his total utility was falling with additional consumption

a. True b. False Indicate whether the statement is true or false

Economics

Suppose the production function is q = 12 L0.25K0.75. Determine the long-run capital-to-labor ratio (K/L) if the cost a unit of capital (r) is three times the cost of a unit of labor (w)

What will be an ideal response?

Economics