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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?

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Answer and Explanation:

  • Market power alludes to the capacity of a firm (or gathering of firms) to raise and keep up cost over the level that would win under challenge is alluded to as market or imposing business model power.
  • The activity of market power prompts diminished yield and loss of financial welfare.  
  • Patents are essential to the individuals who hold them for two fundamental reasons. To start with, licenses enable firms to profit by their own innovative work.  
  • In the event that a firm holds a patent on a given item or thing, different firms are kept from entering the market for selling or utilizing that gadget.

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