Economic Interpretation of the Dual LP: Shadow Price

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  1. Sergiy Butenko
  2. linear programming
  3. optimization
  4. operations research
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Комментарии
Автор

Hi.. Thanks for the video it was a great explanation.

I had a question regarding the interpretation of the primal if it was a revenue maximization. If essentially it cost more than what we are selling it for, we would still generate additional revenue even if the cost was higher. therefore in that case the objective function value would still increase.. how does the marginal price account for that?

nvmczqu
Автор

Sir, your videos are incredibly helpful for aspiring mathematicians that want to strengthen their intuition and understanding of LP duality. Thank you so much.

alieser