One of the most famous cartels is OPEC.

Explain the difference between partial equilibrium analysis and general equilibrium analysis

What will be an ideal response?

Compared to a perfectly competitive firm, the demand curve facing a monopolistically competitive firm is

A) less elastic because monopolistically competitive firms produce similar, but not identical, products. B) more elastic because in the long run, the demand curve is tangent to the firm's average total cost curve. C) just as elastic because there are many sellers in both markets. D) more elastic because there are many close substitutes for the product of a monopolistically competitive firm.