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The following production function has been estimated for wheat: 4 where, W = Wheat yield (kg/ha), F = Fertiliser (kg/ha) and L = Labour (hours/ha) Derive an expression for the least-cost expansion path given that fertiliser costs R12 per kg and labour costs R6 per hour. [4] If the wheat producer has a budget of R9 000 to spend on fertiliser and labour, how much of each input should he use and what is the quantity of wheat he will produce? [4] Derive expressions for the value of marginal product (VMP) of fertiliser and labour given that wheat sells at R72 per kg.
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