We achieve four objectives. First, we provide an analytically tractable intertemporal framework in which dynamic Ramsey pricing may be analyzed. Second, we show how correction of conventional measures of average costs and marginal costs for intangible spill-over effects such as adjustment costs can have a dramatic impact on approximations of Ramsey numbers using conventional measures of marginal and average costs. Third, in contrast to received literature on this problem our framework is capable of (a) identifying which services should be contracted or expanded, and (b) determining how fast each service should be expanded or contracted. To put it another way, in contrast to most received literature on Ramsey optimality which examines the first order necessary conditions of optimality of positive production, we examine the more global problem of whether to produce at all. Fourth, the recursive time stationary structure of our framework allows us to use the tools of phase diagram geometry to analyze the impact on investment and production of (i) an unanticipated change in a parameter, and (ii) an anticipated change in a parameter which is due to occur at a fixed date in the future. Our recursive framework is especially useful for bringing out economic effects of this kind.