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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