Abstract
This chapter presents a special case of the theory of programming that has many practical applications in economic analysis. It is called linear programming, and its characteristic feature is that both the objective function and the balance conditions are linear functions of variables x1, x2,…xn. It discusses the geometrical interpretation of linear programming and explains the concept of the simplex method. As marginal analysis cannot be applied to linear programs, it is necessary to seek other ways of solving these problems. Such ways are provided by the theory of linear programming. There are two basic methods of solving linear programming problems: the first is the geometrical one and the second is the algorithmic, in which linear algebra is used. A geometric solution can in practice be used only when there are two or three unknowns in the program; in the latter case, it is necessary to use a spatial model.
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