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