Interconnection Between LFP and LP

As we have seen in Chapter 5, dual variables of LFP indicate if a small change in RHS vector 6 alters the optimal value of numerator P(x) of objective function Q(x) and hence, affects the optimal value of Q(x). It means that the economic interpretation of dual variables in LFP and in LP may be very much alike. However, as is shown by formulas (5.98) and (5.113), dual variables of LFP act more selectively than dual variables of LP. Moreover, if the latest may be interpreted as a total change in profit P(x) when changing resource vector 6, then variables y _i , i = 1,2,…, m indicate only the intensive part of a total change in profit. In this chapter we deal with the interconnection between problems of LFP and LP, and their dual variables. We will show how this close connection may be used in real-world applications.