Abstract
The research subject is the sale of mineral water, the production of which has the character of a monopoly due to the control of the resources necessary for the production of this product by one firm. The goal of this article is to express the amount of economic profit (within a monopoly) of companies that produce mineral water, achieved due to their privileged position on the given segment of the market; the expression of a value chain of mineral water production will be the means of achieving this objective. The research will also result in recommendations for the behaviour of producers and consumers in a given segment of the mineral water market. The survey shows that due to their monopolistic position on the mineral water market, up to CZK 34 of the firms' earnings per litre of mineral water has the character of pure economic profit; this represents, on average, a monopoly profit of 76.87% of the price of the product.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.