A solution to a system of equations where some variables are zero. For example, firms typically do not produce many goods, and individuals typically do not consume all available goods. This is contrasted with an interior solution, in which all variables are non-zero. Statements of optimality conditions in terms of equality of marginal costs and marginal benefits are correct only for interior solutions. With corner solutions, as a price or output variable which is already zero cannot be reduced, the optimality condition applicable is an inequality, showing that it is not desirable to increase it.

• 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
• loss
• loss leader
• Louvre Accord
• loyalty, brand
• Ltd
• Lucas critique