Memorandum, Department of Economics, University of Oslo 2008,02
By means of some simple examples from economics, we elucidatecertain solution tools for the solution of optimal control problems were the system under study undergoes major changes when certain boundaries are crossed. The major changes may be that the state gets a jump discontinuity when crossing a boundary, or that the right hand side of the differential equation changes. Some theoretical result are presented. Among the results presented, at least the sufficient condition related to fields of extremals should be new.