Monopolistic Competition (Short Run) – Interactive Diagram

Adjust the sliders to see how demand, marginal revenue, average cost, and marginal cost curves shift. The firm maximises profit where MR = MC (at output Q₁). The price P₁ comes from the demand curve. If price is above AC at Q₁, the firm earns supernormal profit, shown as the shaded orange area.

Demand (AR) MR MC AC

Sliders