Do you know Economics is the only subject in the world that allows you to draw diagrams “like a boss” in your answers?
I have received many feedbacks from students that they do not know:
1) when to draw diagrams and when not to;
2) draw what diagram;
3) how to draw diagrams fast and precisely.
Today, I will be going through the last part of the diagram series.
To tackle how to draw diagrams fast and precisely, the catch is to practice and practice. However, for certain diagrams like your market structure, there is technique and order of curves involved in drawing.
For example in market structure questions requiring AC and MC curves, while making sure that you draw fast since you do not have forever to draw in exam hall, make sure your MC curve always intersect the AC curve at its minimum point (not anywhere else). Also always illustrate where is the profit maximizing point and output where MC = MR.
If the question requires to illustrate scenarios like subnormal/supernormal/normal profit, the strict order of curves to draw are AR > MR > MC > AC. If you don’t believe, try to draw it in any other order and see if you are able to attain your desired results.
Lastly, always visualize in your head the drawings first before you sketch on your exam paper. You do not want to be using liquid paper to remove wrong curves you sketched!