In the new dynamical theory of economics there arises a very general problem which can be said to be a generalization of the Lagrange problem in the calculus of variations.4 It will not be necessary to consider the formulation of the corresponding economic theory here since I have already done this in another paper.? It would hardly be fair, however, to introduce the reader to a rather unusual mathematical situation without giving some hint as to its origin. It seems desirable, therefore, to give first a brief economic formulation of the problem whose mathematical aspects will be discussed in this paper. If there are two producers of an identical commodity C, manufacturing, respectively, amounts ul(x) and u2(x) of C per unit time, subject to the respective cost functions 41(ul, ui', U2, u1, U3, u f, x) and 42(ul, ul', U2, UI', U3, U3 , X), where u3(x) is the selling price of C at a time x, then the respective profits obtained during an interval of time xo < x < xi are
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