Investment to allow an unchanged volume of output to be produced at lower cost. This may be by saving on labour, fuel, or material inputs. Capital deepening is contrasted with capital widening, where investment allows increased production by unchanged methods, using additional labour, fuel, and materials.

• local government
• local maximum
• local minimum
• location
• lock-out
• locomotive principle
• logarithm
• logarithmic scale
• logistic curve
• log-linear function
• log-normal distribution
• log-rolling
• Lomé Convention
• London Inter Bank Offered Rate
• London International Financial Futures and Options Exchange
• long-dated security
• long position
• long rate
• long run
• long-run average cost
• long-run marginal cost
• long-run Phillips curve
• long-term interest rate
• long-term unemployment
• Lorenz curve