Drawing Market Spectrum diagrams

The video below will explain how to draw the diagrams needed in Perfect Competition (SR and LR); Monopolistic Competition (SR and LR); and Monopoly (SR and LR). There are similarities too with Oligopoly inthat the AC and MC curves are the same, only the AR and MR curves are different due to the concept of price rigidity.

You will notice that the Cost/Quantity axis and the AC and MC curves are a constant for them all which makes things a little easier.


The Market Spectrum is examined every year, so you should use this video to practise the diagrams every so often.