Unit 9- Comparing Market Structures



The information for this table and the graphs below came from The Principles of Microeconomics by Sayre and Morris.




This is a perfect competition graph. It shows that total profit is the distance between the AR and AC.



This is a monopoly graph. It shows that output between the points where AC meets AR is profit, AR=AC, and that maximum output is where MC= MR. 

This is a monopolistic competition graph. The area shaded in light purple is the economic profit.

This is an oligopoly graph with a kink in its demand curve because the MR is discontinued. Prices above where P meets Q rivals will not match but prices below this point rivals will match.