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Laissez faire
Letting market operate with no intervention from the government

Law of demand
All factors remaining the same, with the increase in the price of a good, the demand for it will decrease, and vice versa.

Law of diminishing marginal returns
It states that a further increase in the variable factor beyond a certain point would lead to inefficiency in production thereby leading to a decrease in returns

Law of diminishing marginal utility
The more one consumes the less one would want to consume any more of it.

Law of supply
It states that the quantity supplied increases with a rise in price and contracts with a falls in price, other things remaining constant.

When the income is not used for consumption purposes, and the income generated is not injected back into the market, it is a leakage

Leveraged buyout
When a firm acquires the controlling interest in another firm through borrowed funds

Lmit pricing
A pricing strategy by a firm which has market control such that not much demand is left for other firms to enter the market and make profits.

Limited liability
A terminology used to explain that the owners are not personally liable for the Companys debts.

Lorenz curve
A graphical representation of the state of inequality in terms of the distribution of income in a society and the concentration of the group.

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