By taking the pollutant emissions on unit yield and the content of pollutant in environment as state variables, the production and the investment which the firm to abate pollution as control variables, this paper establishes a profit maximization dynamic optimal control model of firms which are monopolists and produce single product, and creates an expression to explain their optimal outputs and pollution ahatement investment and corresponding profits, consumer surplus and social welfare. It is proved that the managers can adjust the initial di...
