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 ?
Among which: TEC stands for tourism ecological carrying capacity ([hm.
The carrying capacity of each portion is ten, so you may never have more than ten M&Ms on your portion of the plate.
2002, and Krevaikas & Triantafillou, 2005, showed that strengthening of masonry columns with glass fiber fabric increased carrying capacity up to 300%.
Last year, BelAZ delivered ten haul trucks with the carrying capacity of 45 tonnes to Vietnam.
Other organizations attacked in the report include Negative Population Growth, Carrying Capacity Network, Population-Environment Balance and the Social Contract Press (headed by anti-immigration author Roy Beck).
In the past decade, the anti-immigrant lobby, which includes groups such as the Federation for American Immigration Reform and the Carrying Capacity Network, has jumped on the "green" bandwagon to invent a new form of scapegoating that targets immigrants as a cause of our environmental problems.
35/2013- Purchase of vans with a carrying capacity about 1000 kg
Contract notice: Contractor under the contract "Recovering high water river Tisza floodplain water carrying capacity of the section between the Szolnok railway bridge and a small circle" of preparation and implementation of the construction plans keop-2.
But I can't really give a specific number for the carrying capacity of the Earth.
Anti-risk measures for investment in the railway industry include share-hold operation in railway construction, cooperation with both state-owned capital and foreign capital, multiple operations through cooperation with railway operation companies, gaining investment by carrying capacity, etc.
Our targeted cultural carrying capacity, which attempts to balance the tradeoffs, is 21 deer per square mile of forested habitat.