Suppose the monopolistically competitive restaurant industry in your town is in long-run equilibrium, when difficulties in hiring cause restaurants to offer higher wages to cooks, servers, and dishwashers. Using graphs similar to Short Run and Long Run Oligopoly Equilibrium, explain the effect of the wage increase on the industry in the short run and in the long run. Be sure to include in your answer an explanation of what happens to price, output, and economic profit.