In Figure 8.3, why is the revenue curve a straight line in panel a? What is the slope of the revenue curve? What is the slope of the profit curve at the q where profit is maximized? What can you say about the slopes of the cost and revenue curves at the q where profit is maximized? Why is profit equal to the gold box in panel b?
Figure 8.3 How a Competitive Firm Maximizes Profit

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Cost, C/ Revenue 4,800 2,272 1,846 840 426 T(g) n* = $426,000 100 -100 140 284 q. Thousand metric tons of lime per year (b) MC AC P= MR IT = $426,000 6.50 6. 140 q, Thousand metric tons of lime per year 284 Cost, revenue, Thousand $ p, $ per ton