If a company's total revenue begins to exceed its total cost at a certain level of output, what underlying factor contributes to this effect?

When a company's total revenue starts to exceed its total cost, it usually means that the company is producing and selling its goods or services efficiently. This happens because the company is finding the right balance between how much it produces and how much it sells. For example, if a bakery makes 100 loaves of bread and sells them for $3 each, its total revenue is $300. If the cost to make those 100 loaves is only $200, the bakery makes a profit of $100. This profit occurs because the bakery has optimized its production and pricing, allowing it to cover its costs while earning extra money.