IB Economics | Profit Maximization Price

In this video I explain the concept of profit maximization. The property of profit maximization is to have marginal revenue equals the marginal cost.
I.e. a firm will sell until it reaches the point where the marginal revenue from the last unit sold equals the marginal cost of selling that unit.
The reason is that until that point, the firm can still increase its profit. This means that if at a given level of quantity, the marginal revenue exceeds the marginal cost then the company is making positive profit. Therefore there is still an incentive to produce more output. The firm keep producing the output until it reaches the level where the marginal revenue equals the marginal cost.
It does not produce beyond that point because then the production of an additional unit of output become unprofitable. The reason is that the marginal cost of the last unit produced would be higher than the marginal revenue of the last unit produced.