Wheat is produced according to the production function: q = 100K^0.5H^0.5 Where q = quantity of wheat produced; K = capital input; H = labour input (i) If the capital input of 16 units and a labour input of 25 units are used, show all your working in answering the following: (a) what is the marginal product of labour? (b) what is the marginal product of capital? (ii) If the cost of capital (r) is R200 per unit, the cost of labour (w) is R150 per unit, and the units of capital and labour are as in part (i) above, show all your working in answering the following: (a) what is the total cost of production? (b) what is the average cost of producing q units of wheat?
