capacity

(redirected from mental capacity)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

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 ?
The period between 14 and 18 years of age corresponds to a developing mental capacity, a transition situation between the lack of mental capacity and the full mental capacity.
Anne Elliott, marketing partner at Latimer Hinks Solicitors, said: "We have always advised clients on issues surrounding mental capacity and Court of Protection matters and we recognise that demand for these services is increasing.
You would need to provide details of your father's assets and liabilities, his income and outgoings and a medical report confirming your father's mental capacity, and to take out insurance to protect your father's assets.
As well as showing an increase in the number of applications to use the safeguards - rising 27 per cent to an annual total of 11,393, with more than half of those (56 per cent) being granted - the report highlighted a number of worrying issues, such as a lack of understanding of the Mental Capacity Act and DoLS safeguards, and the wide variation in how individual authorities observe and implement the safeguards.
Mental capacity (1) is a social construct clothed in the naturalizing language of a biological fact.
Whilst the thought of having to contemplate what would happen to your business if a key shareholder were to pass away or suddenly lose mental capacity seems a rather morbid prospect, the reality if you were unprepared for such an eventuality would be even more ghastly.
He said that these delusions prevented her from having the necessary mental capacity to intend to live separate and apart from him.
A 34-year-old with diminished mental capacity went missing Tuesday in Pacoima, police said.
Presiding Judge Mihoko Tanabe found Taira Hara, 61, mentally competent, rejecting the defense counsel's argument that the defendant was in a state of diminished mental capacity at the time of the crime.
Scientists at the University of Lausanne said they had discovered a "negative correlation between an improvement in a fly's mental capacity and its longevity".
The Independent Mental Capacity Advocacy Service is a new statutory service managed by Mental Health MattersWales in south-west and south-eastWales.
The Law on Donation, Removal and Transplant of Human Body Parts requires organ donors to be at least 18 years old and possess "viable mental capacity," and allows foreigners living abroad to donate their tissues and organs to be transplanted in Vietnam, Thanh Nien News reported.