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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 ?
As each government is different, each prison system has to define its own target capacities. In Nevada, the capacity is controlled by administrative regulation.
Very high tape capacities, high transfer rates, and low cost per gigabyte are important factors for these applications, which include storage of financial records, e-mail images, and long-term storage of medical images.
As Asian container-board capacities sprint forward against their creeping North American counterparts, China's role looms large.
In general, the refined estimates of capacity are the fitted values from regressions that retrend the physical capacity or capital stock estimates to the trend growth path of the preliminary implied capacities ([IC.sub.t] = [IP.sub.t]/[U.sub.s,t]).(13) The resulting capacity indexes are generally procyclical--that is, they tend to rise faster in good times than in bad, following investment cycles--but they typically do not fluctuate as much as the preliminary implied capacity series.
To reach native terabyte-class tape cartridge capacities and beyond, Maxell has developed Neo Super Maximum-capacity Advanced Reliability Tape (NeoSMART)--a collection of advanced technologies and production methodologies designed to support native capacities of up to 10TB per cartridge and beyond.
First, it seeks to familiarize the reader with the concepts of impairment, disability, handicap, functional limitations, functional capacities, and functional assessment, and to discuss the professional benefits of incorporating the client's functional limitations and capacities into the rehabilitation diagnosis and planning process.
Disk roadmaps are growing at 40-60% annually and now indicate a clear path to 5 terabytes or more per drive by 2012 at the latest; however, disk drive performance capabilities have not kept pace with the growth in disk capacities. Disk drive performance is improving well below 10% annually.
With capacities from 500 to 1500 cfm, units can be readily added to any existing air ring to improve bubble cooling.
Disk-drive projections indicate capacities of nearly 5TBs in 2013 and native tape cartridge capacities ranging as high as 10TBs by 2013.
The new drive has been designed for audio video (AV) and ATA nearline environments, where large capacities and a lower per-gigabyte cost are key requirements.
As drive capacities grow, so does the time required to rebuild the data and restore data protection.
"The design excellence in both Hitachi's and HP's products is a sure bet to please increasingly sophisticated and digitally-engaged end-users who require outstanding notebook features, including greater performance and capacities."