In a monopoly market, a firm maximizes its profit by producing output where marginal revenue equals what?

In a monopoly market, a firm maximizes its profit by producing output where marginal revenue equals marginal cost. Marginal revenue is the additional money the firm makes from selling one more unit of a product, while marginal cost is the cost of producing that extra unit. When these two values are equal, it means the firm is making the most profit possible because producing more would cost more than it earns. For example, if a monopolistic company sells toys and finds that making one more toy costs $5 but it can sell it for $8, the marginal revenue is higher than the marginal cost, so it should keep producing until those two numbers match. This balance helps the monopoly determine the best quantity of goods to produce to maximize its profits.