Suppose the firm produces less than Q*, such as QU (under produce) in the graph to the right. In this case, all the units numbering
greater than QU and less than Q* can be produced at lower added costs than the additional revenue
they would generate. For these units MR > MC.
If the firm chooses to produce QU rather than Q* units it is giving up profits equal to the shaded area shown to the right. So, anything less than Q* isn't profit maximizing.
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