Modelling Supply Functions Using Linear Programming
This last chapter provides an example of how to integrate the production economic theory presented in the first ten chapters of this book and the Linear Programming approach presented in the last three chapters. The example shows how is it possible to use Linear Programming to numerically generate the output supply function of the firm. This approach has shown to be a suitable modelling unit in a sector modelling context, in which the supplies from the individual firms are aggregated into the total industry supply.
KeywordsProduction Plan Production Vector Shadow Price Supply Function Output Price
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