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The Pear Corp produces high end consumer electronics using labor L and capital K according to...

The Pear Corp produces high end consumer electronics using labor L and capital K according to production function Q = F (L,K) = (100)(L^1/4)(K^1/4). Let the price of a unit of labor be given by W and the price of a unit of capital is given by R. The output price is P = 1 which Pear Corp takes as given for any choice of output level Q. Both labor and capital are fully adjustable. Set input price W = 20 and R = 5.
1) Solve for Pear Corp’s cost function C(Q).
2) Determine Pear Corp’s optimal output level Q? using the first order condition, MC(Q?) = P
3) How much labor and capital does the Pear Corp demand given its optimal output choice?

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