Hit a wall. Can anyone show me the the algebra to solve for capital’s share of factor cost given the following: 4.3% = 1.8% + 3.1(a) + 2.2%(1-a)
Thanks in advance!
I presume that “3.1” is supposed to be “3.1 % ”. If so:
4.3% = 1.8% + 3.1%(a) + 2.2%(1 − a)
4.3% − 1.8% = 3.1%(a) + 2.2% + 2.2%(−_a_)
4.3% − 1.8% − 2.2% = 3.1(a) − 2.2%(a)
0.3% = (3.1% − 2.2%)a
0.3% = (0.9%)a
a = 0.3% / 0.9% = ⅓
Boom! Thank you very much!