1.One thing seems odd to me. Both the perfectly competitive firm and the monopolistic competitive firm produce the quantity of output at which MR  MC. And both charge the highest price (per unit) they can charge. In other words, they make the same choices with respect to “how much to produce”

and “what price to charge.” But even though they make the same choices, the outcomes of their choices are different. The perfectly competitive firm is resource allocative efficient and productive efficient, whereas the monopolistic competitive firm is neither. How can you make the same choices and get different outcomes?