ABSTRACT

As the application of linear programming in the computation, Shadow price is introduced by Kantorovich who is mathematician and mathematical economists of the former Soviet Union (Kantorovich 1960). This theory reflects the price of the optimal allocation of resources, and then it was improved by Samuelson to reflect the price of the best use of resources. Aucamp and Steinberg defined the shadow price of a resource as the variable rate of optimal objective function value that is brought by incremental unit-resource (Aucamp & Steinberg 1982).