Suppose a firm is operating at an input combination such that MRTS > wfr . How should the firm adjust its use of labor and capital to reach an optimum input combination. Select one: 0 a. "he firm should reduce its use of labor and increase its use of capital. 0 l). 'he firm should reduce its use of capital and increase its use of labor. 0 0. "he firm should adjust the cost of the inputs. 0 d. "he firm should decrease use of both inputs to reach a lower cost ratio. If all firms in a perfectly competitive market are identical, which of the following is NOT a condition for long-run equilibrium in the market? Select one: O a. price is above average cost for all firms O b. each firm is maximizing profit O c. all firms are earning zero economic profit O d. no firms want to enter or exit the industry