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:

Government Takeover

The acquisition of control over a company or sector by the government, potentially involving nationalization or requisition of private assets.

Per-Unit Costs

The expense incurred to produce, acquire, or sell one unit of a product or service, used in calculating profitability and pricing strategies.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Semiconductors

Semiconductors are materials, such as silicon, which have electrical conductivity between that of a conductor and an insulator, used in a vast array of electronic circuits and devices.