For finite-valued variables, mutual information is
Terms of zero joint probability are zero. A discrete memoryless channel has fixed transition probabilities on finite alphabets, and conditional on an input sequence its outputs are independent with the product law . Its channel capacity is
bits per channel use. The maximum is over all input distributions, with the transition law held fixed.
Let the probability of the first input be . The two equal output probabilities are , and the third is . Writing for the binary entropy function, the output entropy is , while the conditional entropy is . Therefore
The derivative with respect to is
and the second derivative is in the interior. Thus the unique stationary point is the global maximum. It occurs at , so
The capacity itself is . The maximization is over , not over arbitrary output distributions; keeps the feasible outputs explicit.
Let record whether the second stage erased the symbol, and write its output as . The erasure marker is outside the original output alphabet, so is determined by . Independence makes independent of both and the first output . The chain rule for mutual information therefore gives
The erased branch gives zero information because its output is constant; the unerased branch has exactly the original joint input-output law. Maximizing over the same input distributions gives
This includes and . It is the capacity after independent output erasure; input-dependent erasure would not justify the independence step.

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