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Short-Run Loss
A situation where a firm's total revenues are less than its total costs within a short period, not allowing all factors of production to vary.
Long-Run Equilibrium
A state in which all factors of production and costs are variable, and the economy or the firm is fully adjusted to economic conditions, with no excess demand or supply in any market.
Efficient Scale
The level of production that minimizes the average total cost of producing a good or service. It represents the most cost-effective point of operation for a business.
Maximum Profit
The highest possible profit a firm can achieve when it has optimized its production and sales, given the constraints of the market.
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