An Economic Interpretation of Linear Programming
Authors: Quirino Paris
This text covers the basic theory and computation for mathematical modeling in linear programming. It provides a strong background on how to set up mathematical proofs and high-level computation methods, and includes substantial background material and direction. Paris presents an intuitive and novel discussion of what it means to solve a system of equations that is a crucial stepping stone for solving any linear program. The discussion of the simplex method for solving linear programs gives an economic interpretation to every step of the simplex algorithm. The text combines in a unique and novel way the microeconomics of production with the structure of linear programming to give students and scholars of economics a clear notion of what it means, formulating a model of economic equilibrium and the computation of opportunity cost in the presence of many outputs and inputs.
Table of contents (21 chapters)
Front Matter
Introduction to Linear Programming
Primal and Dual LP Problems
Setting Up LP Problems
The Transportation and Transshipment Problems
Spaces, Cones, Bases and Extreme Points
Solving Systems of Equations
Primal Simplex Algorithm: The Price-Taking Firm
The Dual Simplex Algorithm
Linear Programming and the Lagrangean Function
The Artificial Variable Algorithm
The Artificial Constraint Algorithm
The Diet Problem Revisited
Parametric Programming: Input Demand Functions
Parametric Programming: Output Supply Functions
Dealing with Multiple Optimal Solutions
Solid Waste Management
The Choice of Techniques in a Farm Production Model
Cattle Ranch Management
The Measurement of Technical and Economic Efficiency
Decentralized Economic Planning
Theorems of Linear Programming
Back Matter
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