Bicycle frames are produced by a number of identical rms under perfect competition. Each rm's long-run cost function isc(y) =y3 -20y2+ 100y+ 8000 whereyis the number of frames produced. The market demand for frames isq= 2500-3pwherepis the market price per

frame.

(a) What is the long run equilibrium price?

(b) What is the long run equilibrium level of industry supply?

(c) What is the long run equilibrium number of rms in the industry? How many frames

does each of them produce?