The _____________________ is the effect of a change in the price of an input on the firm's relative use of the input to produce a given level of output

If real salaries increase but nominal salaries do not, this means that

A) the purchasing power of money has decreased. B) prices have risen. C) prices have not changed. D) prices have fallen.

Which of the following is NOT a characteristic of a perfectly competitive long-run equilibrium?

A) Firms are earning zero profits. B) Price equals marginal cost. C) Price equals long-run minimum average cost. D) Firms are producing on the downward sloping portions of their short-run average cost curves.