This paper builds up a two-period durable goods model to analyze the impacts of marginal cost on innovation intensity and production behavior for durable-goods monopolists. The results show that, first, if the marginal production cost is higher, the innovation level will be lower. Second, when the discount factor is higher, an increase of the marginal production cost will raise the outputs of durable goods in the first period. This is because each durable goods monopolist faces the time inconsistent problem. However, the time inconsistent problem for a monopolist with a higher marginal production cost will be less serious. Finally, a monopolist with commitment power will choose no innovation and will only sell durable goods in period one to avoid Coase's conjecture problem.