If a monopolist increases its output to the point where marginal cost equals marginal revenue, what is the likely effect on consumer prices?

When a monopolist increases its output until marginal cost equals marginal revenue, it is trying to maximize its profit. Marginal cost is the cost of producing one more unit of a good, while marginal revenue is the additional income gained from selling that extra unit. When these two are equal, it means the monopolist is producing the most profit-efficient amount of goods. As a result, increasing output can lead to lower consumer prices because more products are available in the market, which can create competition and drive prices down. For example, if a company that makes toys produces more toys, it may lower the price because they want to sell all the toys they’ve made, making them more affordable for consumers.