Various economic meanings are included in the simplex tableau as a tool for solving a linear programming problem. But the interpretation of its economic meanings has been understood differently by the economists. In this paper we try to clarify the ec...
Various economic meanings are included in the simplex tableau as a tool for solving a linear programming problem. But the interpretation of its economic meanings has been understood differently by the economists. In this paper we try to clarify the economic meanings included in the simplex tableau. We first review the solution process of the linear programming through the matrix form of the linear programming, and then vectors in the simplex tableau resulted from the matrix form are analyzed according to economic theory. Especially the decision variables in the dual problem of the linear programming are key factors to understand the meanings, sow e concentrated our efforts on those variables to interpret its meanings.
We found that the vectors in the simplex tableau had the meanings such as marginal rates of substitutions, free goods, marginal revenue product, marginal physical product, etc. As a result of this study we recognized that we could get information about quality and value with respect to the linear programming problem from the simplex tableau.