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Loss-Minimizing
A strategy or position where a firm aims to reduce its losses to the lowest possible level under adverse conditions, often by adjusting production.
Zero Economic Profits
Zero economic profits occur in a competitive equilibrium when firms earn just enough revenue to cover their total costs, including the opportunity costs.
Short Run
A period of time during which at least one of a firm's inputs is fixed, limiting its ability to increase production.
Long Run
A period in economics in which all factors of production and costs are variable, allowing for full adjustment to changes.
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