Crest Toothpaste Offers New Whitening Toothpaste One Year,a New Gel

question 88

Essay

Crest Toothpaste offers new whitening toothpaste one year,a new gel swirl design the next year,and an improved cleaning formula the year after.Crest Toothpaste does this because it is
A) a monopoly trying to decrease its costs.
B) a perfectly competitive firm trying to increase its price.
C) a monopolistically competitive firm trying to maintain its economic profit.
D) driving its competitors out of business.
E) a perfectly competitive firm trying to increase its costs so it can increase its price.

• A) a monopoly trying to decrease its costs.
• B) a perfectly competitive firm trying to increase its price.
• C) a monopolistically competitive firm trying to maintain its economic profit.
• D) driving its competitors out of business.
• E) a perfectly competitive firm trying to increase its costs so it can increase its price.

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Definitions:

Amortization

The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.

Stock Investments

Purchases of shares in other companies, intended as a long-term investment or to exert control or influence over those companies.

Cash

Money in the form of coins or banknotes, especially that held by an organization or in bank accounts.

Community Bonds

Investment instruments issued by local governments or community organizations to finance projects that benefit the community, often with a social or environmental focus.