In a monopoly market structure, a firm maximizes its profit by producing a quantity of output where which of the following conditions is met?

In a monopoly market structure, a firm maximizes its profit by producing the quantity of output where marginal cost equals marginal revenue. Marginal cost is the cost of producing one more unit of a good, while marginal revenue is the additional income from selling that extra unit. When these two values are equal, the firm is at a point where it cannot increase its profit by producing more or less; producing more would cost more than it earns, and producing less would mean missing out on potential profits. For example, if a monopolist selling chocolate bars finds that producing the 100th bar costs $2 and also brings in $2 in revenue, it is at the optimal output level. This balance helps the monopolist decide how much to produce to ensure maximum profit.