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3 questions
2
votes
1
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Find the Pareto Efficient set for 3 Leontiefs
I'm struggling with the following General Equilibrium exercise:
Find the Pareto Efficient set for this Pure Exchange Economy;
The consumers are $i = 1,2,3$ with these Leontief utilities:
$u_i(x_{1i},...
- 2,351
1
vote
1
answer
325
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how to derive marshallian demand functions from leontief preferences?
For only max or min problems, I understand we should proceed they are complements but for that
type of function, how do we really get demand functions? should we graph but can this be done without a ...
- 141
2
votes
0
answers
32
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Perfect complement outputs with each output being composed of substitutable inputs
How does one solve the following maximization problem?
$\underset{K_1, K_2, L_1, L_2}{\text{maximize }} min\{K_1 + L_1,K_2 + L_2\}$
subject to $c(K_1 + \mu K_2) + \beta c(L_1 + \mu L_2)$
where $c(...
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