capacity

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Capacity

Credit grantors' measurement of a person's ability to repay loans.

Capacity

The theoretical maximum number of products a company can produce at a given time. For example, an oil pump may have a capacity of X barrels per day, meaning that it cannot produce more than X. Companies rarely operate at full capacity, both to allow themselves leeway in the event of increased demand and because capacity may not be possible at a given time because of worker illness, machinery maintenance, or other reasons.

capacity

the maximum amount of output that a firm is physically capable of producing, at a point in time, given the fullest and most efficient use of its existing plant or plants.

Over time, a firm may adjust its capacity to meet changes in demand and the competitive situation facing it, investing in new plant or extending existing plant to meet an increase in demand, or closing down plant, permanently or temporarily (‘MOTHBALLING’), to meet a situation of OVERCAPACITY.

When preparing a PRODUCTION BUDGET, it is necessary to ensure that the firm has sufficient production capacity to meet planned output levels. A firm's capacity or the capacity of industry in general may be limited by the availability of capital equipment and labour.

The maximum rate of output which the firm can produce will depend upon the capacity of its individual factories which in turn depends upon the capacity of various departments and work stations within each factory See INPUT-OUTPUT CONTROL, PRODUCTION SCHEDULING, PRODUCTION-LINE BALANCING. See CAPACITY UTILIZATION, LIMITING FACTOR, RATIONALIZATION, INDIVISIBILITIES, CAPACITY CONSTRAINED RESOURCE, CAPACITY CONTROL, CAPACITY CUSHION, CAPACITY PLANNING, CAPACITY REQUIREMENTS PLANNING.

capacity

  1. 1the maximum amount of output that a firm or industry is physically capable of producing given the fullest and most efficient use of its existing plant. In microeconomic theory, the concept of full capacity is specifically related to the cost structures of firms and industries. Industry output is maximized (i.e. full capacity is attained) when all firms produce at the minimum point on their long-run average total cost curves (see PERFECT COMPETITION). If firms fail to produce at this point, then the result is EXCESS CAPACITY.
  2. in macroeconomics, capacity refers to POTENTIAL GROSS NATIONAL PRODUCT. The percentage relationship of actual output in the economy to capacity (i.e. potential national income) shows capacity utilization. See also MONOPOLISTIC COMPETITION.

capacity

The legal ability of parties to enter into contracts.
• Full capacity. Having unlimited ability to enter into binding contracts of all types.
• Limited capacity. Having the ability to enter into binding contracts for certain things, such as a minor's contracts for necessities, but also having the ability to disaffirm other contracts upon reaching legal age, for example.
• No capacity. Having no ability to enter into contracts, such as one who has been adjudicat- ed as mentally incompetent.

References in periodicals archive ?
Gross and Battie (2005c) investigated factors influencing results of functional capacity evaluations in worker's compensation claimants with low back pain.
For the study, the following classification was adopted: group V (100 points) = full functional capacity, group IV (95-75 points) = slight limitation of functional capacity, group III (70-50 points) = partial limitation of functional capacity, group II (45-25 points) = considerable limitation of functional capacity, and group I (20-0 points) = very serious limitation of functional capacity (Table 1).
We found statistically significant improvements in the WOMAC functional capacity index scores for all the patients (p <0.
In these patients, the addition of sildenafil produced stabilization or improvement in functional capacity.
Functional Capacity Following CABG, 30 people reported the highest level of functional capacity, 55 a medium level, 46 a low level, and 24 reported the lowest level.
Organisations are considering Functional Capacity Evaluations to ensure employees are fit enough to start or ready to return to work after an injury with an eye towards productivity.
The aim of the study was to assess functional capacity of patients before and after the embolization of cerebral blood vessel malformations in the aspect of nursing care.
The new iPhone application helps users get their functional capacity and personalized recommendations on optimal and safe exercise intensity for each workout.
Washington, August 21 ( ANI ): Knee osteoarthritis patients who were treated with acupuncture had clinically significant improvements in pain levels, stiffness, and functional capacity after one month of treatment, researchers have found.
Q-absorb on the cardiovascular functional capacity of 23 heart patients.
SAN DIEGO -- Treatment with sildenafil appears to have a positive impact on pulmonary pressures and functional capacity in patients with sickle cell disease and pulmonary hypertension, Roberto Machado, M.

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