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Losses
Financial reductions resulting from the operation of a business, particularly when expenses exceed revenues.
Shut Down
In economics, shut down refers to a short-term decision by a firm to cease production because operating costs exceed the revenue generated, particularly when prices fall below variable costs.
Increasing-Cost Industry
An industry in which costs of production increase as output is increased, often due to factors like limited resources or higher input prices.
LRAC Curve
Stands for Long-Run Average Cost curve, which shows the lowest average cost of producing different levels of output when all inputs, including capital, are variable.
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