A firm is currently producing where marginal revenue exceeds marginal cost. What should the firm do to maximize its profit?

When a firm finds that its marginal revenue is greater than its marginal cost, it means the company is making more money from selling an additional unit than it costs to produce that unit. To maximize profit, the firm should continue to increase production until marginal revenue equals marginal cost. This is because each additional unit sold is adding to the firm's profit as long as the revenue from that unit is higher than the cost of making it. For example, if a toy factory makes one more toy and earns $10 from it, but it only costs $7 to produce, the factory should keep making toys until the profit from making one more toy is no longer greater than $0. By following this strategy, the firm can ensure it is operating at its most profitable level.