When the marginal cost surpasses the marginal revenue, the firm's profit begins to decline with the production of one extra amount of quantity, therefore a profit-maximizing firm will not choose to produce at that point.
Profit is the difference between total income and total costs over a given time period in business.
Profit in economics is the difference between the returns on capital, land, and labor (interest, rent, and wages).
Hence, When the marginal cost surpasses the marginal revenue, the firm's profit begins to decline with the production of one extra amount of quantity, therefore a profit-maximizing firm will not choose to produce at that point.
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