A monopolists profit is maximized at the output level where marginal cost equals marginal revenue. The profit-maximizing level of output is not the same as the revenue-maximizing level of output. Profits will be highest at the quantity of output where total revenue is most above total cost. A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm can increase profit by producing one more unit of output. The monopolist can seek out the profit-maximizing level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing output as long as marginal revenue exceeds marginal cost or reducing output if marginal cost exceeds marginal revenue.