When deciding how much of a good to produce, a firm should continue to produce until which of the following occurs?

A firm should continue to produce goods as long as the revenue it earns from selling those goods is greater than the cost of making them. This means that the firm looks at its marginal cost, which is the cost of producing one more unit, and compares it to its marginal revenue, which is the money made from selling that extra unit. The firm should keep producing until these two amounts are equal; at that point, producing one more unit would not make it any more money and could even lead to a loss. For example, if a toy company finds that making one more toy costs $10 but it can sell it for $15, it should keep producing until the cost to make a toy equals $15. This helps the firm maximize its profits and make the best use of its resources.