The patent on the molecule that is central to a popular low-calorie sw

Question

The patent on the molecule that is central to a popular low-calorie sweetener recently expired, meaning that the molecule can now be used by companies other than the sweetener's inventor. During the time the company has held the monopoly on the sweetener, it has accounted for a large percentage of the company's sales and profits. Yet the company is unconcerned about the possibility that the popular low-calorie sweetener will lose sales or profits to competing versions of the sweetener.

Which of the following, if true, would most clearly explain the company's attitude?

(A) Food manufacturers, rather than retail consumers, are the primary market for the sweetener.

(B) The company holds existing patents covering all known economically viable manufacturing processes for making the sweetener.

(C) The sweetener, once rumored to cause cancer, was recently declared safe by government and independent testing agencies.

(D) The company has reduced the price of the sweetener to increase its ability to compete with other sweeteners on the market.

(E) The company has begun to try to develop a new sweetener that will reportedly taste more like real sugar than does the sweetener whose patent recently expired.

ashish9027 · Answer

B is correct because it is mentioned "accounts for large revenue for the company"

Posted from my mobile device

Rance14 · Answer

(B) is correct because they have patents over the most economically viable ways to manufacture the sweetener. Then even if any other company comes into play their manufacturing costs would be much higher hence they would have to sell it at a higher price to earn profits.

So, the original company does not have to worry about other companies and hence, the attitude.

I hope this explains it

av722 · Answer

B is correct

A: doesn't explain why they're not concerned about profits
 B : even if the patent is lost, if competitors can't actually  make  the sweetener, then the company who lost the patent won't be as concerned about profits
C: this makes it more likely that comeptitors will enter, so it really doens't explain why the company isn't concerned about profits
D: it's unclear how this will affect the company's profita
E: unclear how this will affect the company's profits. additionally, the conlcusion is specifically about the OG low cal sweetener, not just generally increasing profits

Diyaunu · Answer

Why not D? If D were true, then the company would not 'lose sales' and hence be equally profitable right??

Matty101 · Answer

It could still lose profit compared to where it was when it was the sole producer. Lowering prices without anything to lower costs in production, could very much lead to a loss in profit.

Dream009 · Answer

(A) Food manufacturers, rather than retail consumers, are the primary market for the sweetener.    Does not matters who the buyer is impact will be same, - eliminate 
  (B) The company holds existing patents covering all known economically viable manufacturing processes for making the sweetener.   How will anyone now produce it and even if they do - they will produce at pretty high cost - good

(C) The sweetener, once rumored to cause cancer, was recently declared safe by government and independent testing agencies.   How This will only strengthen ppl's urge to produce this more now - eliminate

(D) The company has reduced the price of the sweetener to increase its ability to compete with other sweeteners on the market.   Author said the old company is not concerned with patent knowledge becoming public - patent protects idea and manufacturing. This is not to compete with the same sweetner produced by other companies but other. Even if I belief its the same one they are producing with the patent data - b/w B&C which is a better defence? Lowering my price - which will lower my profit - or producing cheap selling at a higher value and protecting price in market as others also produce expensive. So this gives way to B

(E) The company has begun to try to develop a new sweetener that will reportedly taste more like real sugar than does the sweetener whose patent recently expired.  
  Not concerned about future but current profits and patent - Irrelevant  
   Diyaunu

The patent on the molecule that is central to a popular low-calorie sw

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The patent on the molecule that is central to a popular low-calorie sw

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