Reasons for Profit Maximization
1. The profit maximization point occurs where the Marginal Cost equals the Marginal Revenue. This is because, at this point, the additional cost of producing one more unit is exactly balanced by the additional revenue gained from selling that unit.
2. Marginal Cost should be greater than Marginal Revenue after MC = MR because if beyond this point MC is lower than MR then, the firm continues to earn profit, hence the point of profit maximization is not attained.