If a firm increases its output to the point where marginal revenue is greater than marginal cost, what is the most likely effect on its profit maximization strategy?

When a firm increases its output and finds that marginal revenue is greater than marginal cost, it means that the money earned from selling one more unit is higher than the cost of producing that unit. This situation encourages the firm to produce more because each additional unit adds to its profit. For example, if a company makes shoes and discovers that selling one more pair brings in $50 while it only costs $30 to make, the firm gains $20 in profit from that additional pair. Therefore, the firm will continue to increase production until marginal revenue equals marginal cost, which is the point where profits are maximized. In summary, a firm will adjust its production strategy to take advantage of the profit opportunity when marginal revenue exceeds marginal cost.