Creative Dangles is an earring design and manufacturing company. The production function for earrings is Q = 25 KL, where Q = pairs of earrings per week, K = hours of equipment used, and L = hours of labor. Workers are paid \($8\) per hour, and the equipment rents for \($8\) per hour.

a. Determine the cost-minimizing capital–labor ratio at this firm.

b. How much does it cost to produce 10,000 pairs of earrings?

c. Suppose the rental cost of equipment decreases to \($6\) per hour. What is the new cost-minimizing capital-labor ratio?