By producing at the point where MR = MC, the firm:

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Producing at the point where MR = MC ensures that the firm is maximizing its profit. This is because at this point, the marginal revenue earned from the last unit sold is equal to the marginal cost of producing that unit. This means that any further increase in production would result in a cost that exceeds the revenue earned, leading to a decrease in profit. Similarly, any decrease in production would also result in a decrease in profit. Therefore, producing at the point where MR=MC ensures that the firm is operating at its most efficient level and maximizing its profit.

By Producing at the Point Where MR = MC, the Firm