Home >                  	Term: shadow price  
shadow price
The true economic price of an activity: the opportunity cost. Shadow prices can be calculated for those goods and services that do not have a market price, perhaps because they are set by government. Shadow pricing is often used in cost-benefit analysis, where the whole purpose of the analysis is to capture all the variables involved in a decision, not merely those for which market prices exist.
- Part of Speech: noun
 - Industry/Domain: Economy
 - Category: Economics
 - Company: The Economist
 
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 Creator
- summer.l
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