Monopoly from Control of a Unique Resource (Cournot's Mineral Spring)
The French economist Augustin Cournot, writing in the 19th century, provided a classic analysis of pricing for a differentiated product. He used the hypothetical example of bottled water from a mineral spring that was discovered to have 'salutary properties possessed by no other.' Cournot's analysis demonstrated that the owner of such a unique resource would maximize their profit by establishing a price that is higher than the marginal cost of production.
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The Economy 2.0 Microeconomics @ CORE Econ
Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
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