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 ?
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.
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.
The Market Survey of Chinese Solar Cell and Solar Panel Manufacturers includes key market trends in sales (2002-2006) and capacities (2002-2007) and individual profiles on the companies.
To date, the push for higher capacities has focused on the development of smaller acicular particles that can be packed more densely on the tape--the approach used with the particles for SDLTtape II media.
Most professional rehabilitation practitioners might agree that it is not knowledge of the chronic medical condition, but an understanding of the residual functional limitations and functional capacities that are of greatest use when helping their clients develop appropriate rehabilitation plans and programs.
Rotationally molded polyethylene cooling towers come in capacities from 10 to 500 tons or larger.
Tape cartridge capacities are also growing at unprecedented rates but are not faced with the super-paramagnetic effect like disk drives.
The typical high-capacity tape cartridges now have native capacities of 200-500 gigabytes and a compressed capacity of 400 gigabytes to over 1TB using a 2-to-1 compression ratio.
Five standard industrial models are offered in air- or water-cooled versions with capacities from 0.
And even as disk capacities have dramatically increased over the past 10 years, the tape industry has continually maintained a capacity advantage over disk; a single tape cartridge can be used to backup the contents of a single hard drive.
The X Tape family of VXA cartridges, which includes 20, 40, and 80 GB capacities (native), offers even greater reliability and lower pricing.
The roadmap to the 1TB cartridge calls for the release of a family of enterprise class tape drives supporting cartridge capacities from 200GB up to I TB within a few short years.