What Are Accounting,or "Shadow" Prices for Project Appraisal? in What

question 19

Essay

What are accounting,or "shadow" prices for project appraisal? In what way do they differ from market prices,and why do we need them? Additional question or part of question: How can reference to world prices help countries gauge the real opportunity costs of development projects?

---

Definitions:

Obvious Error

A mistake made during a transaction or contractual agreement that is clear and undeniable to all parties involved.

Third Party Beneficiary

An individual or entity that is not a direct party to a contract but stands to benefit from its execution or enforcement.

Certification

The process of verifying the authenticity, quality, or qualifications of something or someone through a formal statement or document.

Contractual Liability

The legal obligation arising from a contract that requires a party to compensate for any losses or damages incurred.