L 7) Consider the two diagrams below. Diagram A represents a typical rm in a purely competitive industry. Diagram B represents the supply and demand conditions in that industry. Assume all the rms are identical and it is a constant cost industry. $6 ATC $6 5 5 5 ' 4 4 G.) .g 3 3 CL 2 2 1 1 D1 0 0 10 20 30 40 50 1000 2000 3000 4000 5000 Quantity Quantity A B (a) Describe the price, output, and prot situation for the individual rm in the short mm. (b) Describe what will happen to the individual rm and the industry in the long run. Show the changes on diagrams A and B