Tianyu sells coffee in the City of Berkeley. The coffee market can be considered perfectly competitive since there are many coffee suppliers like Tianyu and many consumers such as Berkeley students. The long-run total cost of coffee production is TC = 3 82 + 20 and the corresponding marginal cost is MC = 32 16 + 20 where denotes the cups of coffee Tianyu produces. The market demand for coffee is qD = 1000 150 and the current market supply is qS = 200- 400.

A. Does the coffee production exhibit economies of scale, diseconomies of scale, or neither? Explain your answer

B. Find the optimal coffee production for Tianyu and the corresponding profit. Show your calculation details.

C. Suppose that the coffee industry is constant-cost, and all the coffee producers have the same technology. What is the equilibrium market price in the long run? Explain your answer

D. How many coffee producers (including Tianyu) will be in the market in the long run? Explain your answer