Question: Use the following diagrams to answer a and b.
![2048_Firm.png](https://secure.tutorsglobe.com/CMSImages/2048_Firm.png)
a. Show the effect of an increase in demand on the perfectly competitive firm's price, marginal revenue, output, and profits in the short run.
b. Show the long-run effects of an increase in demand for the industry, and the effects on a perfectly competitive firm's price, marginal revenue, output, and profits for a constant-cost industry.