As long as marginal profit is positive, producing more output will increase total profits. ... Total profit is maximized where marginal revenue equals marginal cost. In this example, maximum profit occurs at 4 units of output. A perfectly competitive

firm will also find its profit-maximizing level of output where MR = MC.

Should you maximize profit or revenue?

They serve different purposes in business; revenue maximization can be beneficial in the short-term, but profit maximization is a long-term strategy intended to promote lasting business success.

How do we maximize profit?