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 ?
The dynamic changes of tourism ecological footprint, tourism ecological carrying capacity, and tourism ecological deficits are showed as Figure 1.
The conflict carrying capacity score is also a solid predictor of currency collapse, according t researcher John Freeman at the University of Minnesota; the Swiss Peace Foundation uses CCC scores to identify nations whose currencies are at risk.
The principles classes and the middle school kids worked with a carrying capacity often M&Ms per student, as described above, but the game theory class had a carrying capacity of 20 M&Ms per student.
Environmental munificence may interact with carrying capacity to affect formation rate.
Tutor, a former provincial board member, explained that 'carrying capacity' is the volume of tourists or population, which a destination can accommodate without affecting social services or causing degradation of the environment.
The fisherfolk group recalled its demand to dismantle vast tracts of fish pens in Taal Lake owned by private individuals and big fishing firms, order operators to comply with the lake's carrying capacity, and prioritize the fishing rights of small fisherfolk who have been deprived of their traditional fishing grounds due to the privatization of the fishing water.
Libosada said environmental carrying capacity takes into consideration the impacts tourism brings in an area, including waste generation, food, and water consumption as well as how too many people in a hiking trail can cause soil erosion.
'These comprise 43 Federal Universities, 47 State Universities and 79 Private Universities, with the combined carrying capacity of about two million spaces as against the 1.5 million carrying capacity we inherited when we came in 2015,' he said.
Puyat earlier said President Duterte has instructed the inter-agency task force to conduct carrying capacity studies on the country's other tourist destinations, in line with rehabilitating the country's major tourist sites.
So the estimation of land required per head per year for cereals and millets would be the easiest way of estimating the carrying capacity of our country and even for many other countries where people are having grain based food consumption.
However, to date few literatures have been dedicated to developing a systematic methodology to measure the carrying capacity of suburb lines when applying an express-slow mode [5, 6].
These eco-design Kamsarmax newbuildings have a carrying capacity of 81,800 dwt each, and will be built at Jiangsu Yangzijiang Shipbuilding Co.