The level of output at which marginal revenue equals marginal cost is where a competitive firm's profits are maximized.

Name: The level of output at which marginal revenue equals marginal cost is where a competitive firm's profits are maximized.
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In both competitive markets and monopolies, firms maximize profits at the level of output where marginal revenue equals marginal cost, as this ensures they cannot increase profit by producing more or less.

The Level of Output at Which Marginal Revenue Equals Marginal