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

Question

Quizplus · Accepted Answer

Colgate likely patented the flip-top cap to establish market power, giving it a competitive advantage over other toothpaste brands that cannot sell toothpaste with the same type of cap. This patent prevents other companies from copying Colgate's technology and creating a similar product, which could threaten Colgate's market share.

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