[simiones]

But the point of the conjecture is not that "some equilibrium price exists and can be reached". The whole point is that even monopolists will actually sell this type of good directly at the marginal cost, at the fix point. That is the whole prediction; and/or that no one would buy if they did otherwise.

[mitthrowaway2]

The monopolist would probably not even make the good in the first place if they knew they'd have to sell it at the marginal cost, because they'd make zero profit and be underwater on all of their development costs.