Accordingly, profit maximization is achieved at a point where marginal revenue is equal to marginal cost. This point represents an optimum for both the firm and society as a whole. This is because the maximum amount of goods or services is produced with the given set of resources available at the time.

How is profit maximization achieved?

The general rule is that the firm maximizes profit by producing that quantity of output where marginal revenue equals marginal cost. ... To maximize profit the firm should increase usage of the input "up to the point where the input's marginal revenue product equals its marginal costs".

At what point will profits be maximized?

A manager maximizes profit when the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production (marginal cost).