g. In the long run In a perfectly competitive industry, price equals marginal cost and firms earn no econornic profits. The follovhng two equations describe tl-s long-run situation for prices and costs, where the numbers indicate the amounts of each input (labor and land) needed to produce a urt of each product (wheat and cloth): P P a. b. c. d = + 40r = 75w + 25, If the price of wheat is iritially 100 and the price of cloth is iritially 100, what are the values for the wage rate, w, and the rental rate, P Wloat is the labor cost per urt of wheat output? Per urt of cloth? Wloat is the rental cost per urt of wheat? Per urt of cloth? The price of cloth now Increases to 120. Wloat are the new values for wand r (after adjustment to the new long-run situation)? Wloat is the change in the real wage (purchasing power of labor income) respect to each good? Is the real wage I-igher or lower "on average"? Wloat is the change in the real rental rate (purchasing power of land income) respect to each good? Is the real rental rate I-igher or lower "on average"? Relate your conclusions In part c to the StolperSamue1son theorem.