# The Algebra for Theory of Natural Output

1. May 10, 2013

### JoshMaths

When deriving the natural level of output i am confused as to how the leap is made in the last two lines.

P = P(1+μ)F(1-Y/L,z) =>

1 = (1+μ)F(1-Y/L,z) =>

Yn = h(μ,L,z)

I understand how the mark-up, Total Labour and variable factors are the factors of the natural level but how does this come from the above line?

Thanks,

Josh

2. May 10, 2013

### Staff: Mentor

This is homework, I assume.

3. May 10, 2013

### JoshMaths

Nope, incorrect assumption :)

The notes i am provided from the lecture have made this leap themselves.

Would you like a picture of the notes?

4. May 10, 2013

### Staff: Mentor

No, just needed to clarify.

5. May 13, 2013

### JoshMaths

Nearly all my Economics questions have gone unanswered, if i am missing something huge in terms of my poor question asking please let me know.

6. May 13, 2013

### Staff: Mentor

I don't believe that we have many people here that knowledgeable in economics.

7. May 14, 2013

### Integral

Staff Emeritus
I know nothing of economics, (If I did I would be retired already!)

Just looking at it as a math problem, the second line is just the first with P canceled.

The last line is simply a statement that Y is a function of mu , L and z.

8. May 15, 2013

### JoshMaths

Thanks for your help, i'll try and post more relevant questions next time.