Competition and under-pricing… Yes! The consumer always comes out ahead in this scenario. The puppy is warmer AND less expensive!
Of course, in the real world, Lucy soon becomes a congress-woman and uses taxpayer money to eliminate such competition, calling it “unregulated” (or blaming puppy germs, etc. and spinning it as harmful). Thus leaving Lucy as the warmest thing to hug in winter. And why not knock it up to ten cents, since her competition is gone?