The concept of 'perfect- competition as used by economists

Explain the concept of 'perfect- competition as used by economists, Including the argument(%) why it leads to maximum community income. Contrast this with Cores of imperfect competition, explaining In particular the form of market demand assumed by Naviretti and Venables (NV). 1. Discuss the IN model of 'horizontal' Integration of firms producing the tate final product; in particular, explain the key elements that affect firms decision to multinationallze. 4. Discuss the IN model of 'vertical' integration of firms in which there are two stages of production which can be carried on in one or both of two locations (countries). Explain the case in which all 'componenrproduction is in country']', but 'assembly' may be in country '1' OR country '2'. 5. Economists typically take a broader view of -vertical' and 'horizontal-integration, focusing on the variability of the underlying supply and demand functions. Specifically, explain • and illustrate diagrammatically - the following 'solutions' for a representative NNE: a) maximize total revenue when the demand curves for a particular product differ between two countries! b) minimize total cost when the supply (-marginal cost') curves differ; c) minimize total cost when there are two stages of production, each of which can be done in the 'home' or in the -foreign' country; d) •extra credit' maximize total revenue when production results in two separate products, each of which can be done in 'twee” or 'foreign' locations. 5. Explain the three main types of tax regimes found around the world. Although the US adopts the most onerous type of tax system (can you explain why?) what has happened to make the actual level of tax much closer to international norms?