shadow price

shadow price definition - business

shadow price

The monetary value assigned to a good or service when the market price is unavailable or incomplete. For example, the shadow price of electricity takes into account environmental costs such as air and water pollution as well as direct production costs.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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