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Why would firms, in a perfectly competitive market, maximize thier profits by producing a level of...

Why would firms, in a perfectly competitive market, maximize thier profits by producing a level of output where MR = MC?

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Marginal revenue is the extra revenue generated by the firm with selling one more extra unit and marginal cost is the extra cost occurred with the production of one more extra unit. So when marginal revenue is greater than marginal cost that is when extra revenue is greater than extra cost, production of one more extra unit is profitable. When marginal revenue is less than marginal cost, extra revenue is less than extra cost, so production of that extra unit is not profitable. So when marginal revenue equals marginal cost extra revenue abs extra cost are equal, so firm will maximise its profit by producing where MR equals MC.

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