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, a firm maximizes its profit by producing a quantity of output where its marginal cost equals its marginal revenue. Marginal cost is the cost of producing one more unit, while marginal revenue is the additional income from selling one more unit. When these two values are equal, it means the firm is not losing money on producing additional goods, but is also not missing out on potential profit by producing less. For example, if a monopoly firm finds that producing 100 units costs it $10 per unit and selling those units brings in $10 per unit, it will continue producing at that level to maximize profit. This balance allows the firm to operate efficiently and ensure it is making the most money possible from its sales.