(b) Suppose the demand curve facing Stark Industries shifts to the right, so now it can sell 2,000 units at $1.50 each. Will it now earn a monopoly profit? (c) Why might Stark Industries' demand curve shift to the right? (d) What must Stark Industries do to find its short-run equilibrium price and quantity? ## Profit Maximization: The profit, which equals total revenue minus total cost, is maximized at the level of production where the marginal revenue equals the marginal cost. Where the marginal revenue equals the change in total revenue with respect to one unit change in output and the marginal cost equals the change in total cost per unit increases in production. ## Answer and Explanation: According to the given information, {eq}TC =1000+Q {/eq}. (a) The monopoly total revenue (TR) equals$1,500 (= \$1.5 * 100). Thus, we have:

• Profit...

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