Question 5 (5 points) In the market for a particular identical good there are initially a large number of each of two types of producers: Type A and Type B. Type A producers use a better production technology than Type B producers, so Type A's average cost curve is lower than Type B's. Both types have upward-sloping marginal cost curves and U- shaped average cost curves. Which of the following statements is correct regarding the short-run and the long-run equilibria of this market? a) In the short-run equilibrium, Type B firms produce where the price equals their marginal cost (MC), while Type A firms produce where the price is above their MC. b) Type A firms all produce more in the long-run equilibrium than in the short- run equilibrium. Oc) In the long-run equilibrium, MC = AC for Type A firms, so their economic profits are zero. d) In the long-run equilibrium, both Type A and Type B firms produce at where the price equals their average cost (AC).