Applications of capital theory refer to a world of changing population, institutional processes, technology, and innovation. For example, an investment decision may be affected by some expected repetitive patterns of circumstances or by some seemingly irreversible processes threatened by obsolescence or stagnation. One may assume the principle of an eventually diminishing net returns flow. It seems desirable to treat the marginal efficiency of capital in terms of an initial investment and a net returns flow that varies with time. For a variety of such time dependent net returns flows the treatment of the marginal efficiency of capital is simplified by the Laplace transform technique illustrated in this article.

This article examines some economic problems concerned with profit sharing in a Socialist economy. Two alternative systems of incentives have been made the subject of parallel investigations, comparing the effects which each of these systems have on the firm's behavior. We also examine some problems of price regulation. In the investigation both linear and nonlinear programming methods have been used.