The condition, MC = MR, is the optimizing condition for monopolists and firms in perfectly competitive markets.

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In both cases, the goal is to maximize profit. For monopolists, maximizing profit occurs at the output level where marginal revenue (MR) equals marginal cost (MC). In perfectly competitive markets, firms are price takers and maximize profit by producing at the level where price equals MC, which is equivalent to where MR equals MC in a perfectly competitive market. In both monopolies and perfectly competitive markets, the profit-maximizing quantity occurs where marginal cost (MC) equals marginal revenue (MR). This is because at this point, the firm is producing the quantity where the additional cost of producing one more unit (MC) is equal to the additional revenue earned from selling that unit (MR), resulting in maximum profit.

The Condition, MC = MR, Is the Optimizing Condition for Monopolists