In a monopolistic market, if a firm wants to maximize its profit, it should set its price where marginal cost equals which of the following?

In a monopolistic market, a firm maximizes its profit by setting its price where marginal cost equals marginal revenue. Marginal cost is the cost of producing one more unit of a product, while marginal revenue is the additional money made from selling that extra unit. When a firm produces at this point, it ensures that the cost of making one more unit is equal to the money earned from selling it, meaning they are not losing money on that unit. For example, if a toy company finds that making one more toy costs $5 and selling it brings in $7, it will continue to produce more toys until the cost and revenue balance out. This strategy helps the firm make the most profit possible.