The marginal approach to profit maximization means that a firm should produce until:

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The marginal approach to profit maximization suggests that a firm should produce until marginal revenue (MR) equals marginal cost (MC). At this point, the firm is producing the quantity at which the additional revenue generated from selling one more unit is equal to the additional cost incurred to produce that unit. This maximizes the firm's profit because if MR is greater than MC, the firm can increase profit by producing more, and if MR is less than MC, the firm can increase profit by producing less.

The Marginal Approach to Profit Maximization Means That a Firm