The Algebra for Theory of Natural Output

[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) =>

Y_n = 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

 

[Evo]

This is homework, I assume.

 

[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?

 

[Evo]

Nope, incorrect assumption :)

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

Would you like a picture of the notes?

No, just needed to clarify.

 

[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.

 

[Evo]

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

 

[Integral]

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.

 

[JoshMaths]

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