Thispaperconsidersafirmthatsellsadurableproductwithagivenmarketpotential.Thepurposeofthefirmistomaximizeitsprofitbydetermininghowmuchcapacitytoinstallbeforethesaleshorizon,howmanyproductstoproduceinaccordancewiththecapacity,andhowmanyproductstosellbypricing.AppealingtoPontryaginmaximumprincipleincontroltheory,theauthorsobtaintheclosed-formsofalloptimaldecisionsthefirmshouldmake.Furthermore,theoptimalproductionrateandoptimalsalesratearebothequaltothedemandrate,whichiscausedbytheoptimalpricingpolicyduringthewholehorizon,andtheoptimalpricingpathisincreasingwiththecostofinstallingaunitofcapacity.Furthermore,numericalanalysisrevealsthevisualimpressionoftherelationshipoftheparameters.
