When demand increases,in the short run the purely competitive firm:

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In the short run, a purely competitive firm cannot alter its plant size but can increase production by increasing the use of its existing inputs. As demand increases, the firm can increase its output and sell at a higher price in the market. This results in higher revenue and, therefore, higher profits or smaller losses. However, the firm's costs, including variable costs and perhaps even fixed costs, remain the same in the short run. Spending more on advertising or altering available inputs and output is not necessary or feasible in the short run.

When Demand Increases,in the Short Run the Purely Competitive Firm