The Price-Taking Firm’s Profit-Maximizing Quantity of OutputAt the profit-maximizing quantity of output, the market price is equal to the marginal cost. It is located at the point where the marginal cost curve crosses the marginal revenue curve, which is a horizontal line at the market price and represents the firm’s demand curve. Here, the profit-maximizing point is at an output of 5 bushels of tomatoes, the output quantity at point E.