Wednesday, November 14, 2012

Perfect Complements Again

Norman asked:

We have a Leontief utility function like U(x1,x2)= min (x1,x2).What i want to do is to solve x1 and x2.  I have read a lot about the theory but i couldn't find any solved example for Leontief utility maximization. I really will be very pleased if you can give clues for that problem. Thank you for your treasure time.

My response:

Take a look at this post and see if that does it for you.  If there are further questions post them as comments here.

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