Before revision:   ]  As a subproduct we obtain an enlightening interpretation of the first order conditions for a single firm in Bank 5 . In the infinite-horizon case, with operating profit functions of Cobb-Douglas type, our method allows the explicit calculation of the optimal policy in terms of the base capacity process, i.e. the unique solution of the Bank and El Karoui representation problem 4 .
After revision:  ] As a subproduct we obtain an enlightening interpretation of the first order conditions for a single firm in Bank 5 . In the infinite-horizon case, with operating profit functions of Cobb-Douglas type, our method allows the explicit calculation of the optimal policy in terms of the `base capacity' process, i.e. the unique solution of the Bank and El Karoui representation problem 4 .