Because Colgate Owns Patent Number 5,547,091, Only Colgate Sells Toothpaste

question 30

Multiple Choice

Because Colgate owns patent number 5,547,091, only Colgate sells toothpaste with a flip-top cap, while others use the more traditional screw top. A patent probably wasn't a necessary incentive for Colgate to develop the flip-top cap, so why did it patent the cap?

• A) to decrease the marginal cost of production
• B) to establish market power
• C) to decrease fixed costs
• D) to increase consumer demand for toothpaste

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Definitions:

Natural Breaks

Points in data or a process where there is a significant gap or change, often used to categorize or segment information.

Correlation Coefficient

A statistical measure that describes the extent to which two variables change together.

Inverse Relationship

An inverse relationship refers to a situation where one variable increases while the other variable decreases, showing a negative correlation between the two.

Job Evaluation Points

A numerical value assigned to various aspects of a job, such as skills, effort, and responsibility, to determine its relative worth.