A) What is the essential difference between perfect competition and imperfect competition ? B) Explain the “harmony of interests” that exists in perfect (free market) competition. C) Explain why in...

A) What is the essential difference between perfect competition and imperfect competition ?
B) Explain the “harmony of interests” that exists in perfect (free market) competition.
C) Explain why in free-market perfect competition there are no economic profits in general long-run equilibrium .
D) Construct a two-dimensional graph for a hypothetical firm in imperfect competition. Referring to your graph explain the socially-optimum rate of production and what is the profit-maximizing rate of production.
E) What are the costs to society of imperfect competition?
F) Suggest economic policy that would bring the profit-maximizing rate of production closer to the socially-optimum rate of production.