In a monopoly, a firm maximizes profit by producing the quantity of output where ________ equals marginal cost.

In a monopoly, a firm maximizes profit by producing the quantity of output where marginal revenue equals marginal cost. Marginal revenue is the extra money the firm makes from selling one more unit of a product, while marginal cost is the added cost of producing that extra unit. When these two amounts are equal, it means the firm is making the most profit possible from its production level. For example, if a monopolist sells ice cream cones, they will keep producing more cones until the money earned from selling one additional cone is the same as the cost of making that cone. By finding this balance, the monopolist ensures they are not losing money or missing out on potential profits.