7.  Stark Industries is a monopolistic competitor. It has fixed costs of $1,000 per month and a constant marginal cost of $1 per unit of production. (Hint: TC = FC + (MCQ))

a.  If Stark Industries sells 1,000 units, at what price will it break even?

b.  Suppose the demand curve facing Stark Industries shifts to the right, so it now can sell 2,000 units at $2 each. Will it earn a monopoly profit?

c.  According to monopolistic competition in trade, what might make Stark Industries' demand curve shift to the right?

d. If Stark Industries is currently producing at a point where their marginal revenue is greater than their marginal cost, what should Tony Stark do to maximize profit?