According to the optimal output rule,profits are maximized when firms produce where the difference between marginal revenue and marginal cost is the largest.

Name: According to the optimal output rule,profits are maximized when firms produce where the difference between marginal revenue and marginal cost is the largest.
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Profits are maximized when firms produce where marginal revenue equals marginal cost, not where the difference between them is the largest.

According to the Optimal Output Rule,profits Are Maximized When Firms