To maximize total profits,a firm should produce at the level of output at which there is the greatest difference between marginal revenue and marginal cost.

Name: To maximize total profits,a firm should produce at the level of output at which there is the greatest difference between marginal revenue and marginal cost.
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Question

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A firm maximizes total profits by producing at the level of output where marginal revenue equals marginal cost, not where the difference is greatest.

To Maximize Total Profits,a Firm Should Produce at the Level