An Economic Interpretation of Linear Programming

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 di

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LINEAR PROGRAMMING

An Economic Interpretation of

LINEAR PROGRAMMING Quirino Paris A Revised and Updated Edition

AN ECONOMIC INTERPRETATION OF LINEAR PROGRAMMING

Copyright © Quirino Paris 2016 Softcover reprint of the hardcover 1st edition 2016 978-1-137-57391-9

This book was originally published by Iowa State University Press in 1991, and a revised edition was published in 2013. All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. In accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2016 by PALGRAVE MACMILLAN The author has asserted their right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire, RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500, New York, NY 10004-1562. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. ISBN: 978–1–349–55338–9 E-PDF ISBN: 978–1–137–57392–6 DOI: 10.1057/9781137573926 Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan®, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data Paris, Quirino. An economic interpretation of linear programming / Quirino Paris. pages cm Includes bibliographical references and index. 1. Programming (Mathematics) 2. Linear programming. I. Title. HB143.P37 2015 519.7⬘2—dc23

2015023439

A catalogue record for the book is available from the British Library.

To the fond memory of

Gerald W. Dean Lucio De Angelis and Vincenzo Cosentino

Contents List of Illustrations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix

1 Introduction to Linear Programming 1.1 Economic Equilibrium . . . . . . . . . . . 1.2 Opportunity Cost . . . . . . . . . . . . . . 1.3 What Is Linear Programming? . . . . . . 1.4 An Example of Price-Taking Behavior . . 1.5 Why Another Linear Programming Book? 1.6 Linear Programming Problems . . . . . . 1.7 A Very Important Pattern . . . . . . . . . 1.8 A Farmer’s Problem . . . . . . . . . . . .