ing these two questions for this week's discussion the first was how much output would optimize company profit? Second, does generating the optimal or greatest production maximize profit? To identify the appropriate production level for profit, a business must analyze its cost and revenue frameworks. At maximum profit output, marginal cost (MC) equals marginal revenue (MR). By selling one more unit of product, marginal income is earned, whereas marginal cost is the additional cost of producing one more unit. Profit-maximizing output is the quantity of production that maximizes overall profit by comparing marginal cost and marginal income. Current output may not reflect the firm's maximum production potential. The maximum output is the most a corporation can produce with its resources and technologies. The production that optimizes profitability may not equal this amount. Until marginal cost equals marginal revenue, adding one unit of output will neither increase nor decrease profit for the business. Any deviation from equilibrium provides less profit than desired. If marginal cost was higher than marginal revenue, producing more would cut profits; producing less would increase profits. Economic business conduct is based on profit maximization. Understand that profit is maximized at the production level where marginal cost and marginal revenue are equal. This level of production represents an ideal balance between costs and earnings to maximize profit