capacity

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Capacity

Credit grantors' measurement of a person's ability to repay loans.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Interstitial lung abnormalities were associated with both a decrease in total lung capacity and a lesser amount of emphysema.
Pulmonary Functions: Mean values of total lung capacity (TLC), forced vital capacity (FVC) forced residual capacity (FRC), residual volume (RV) and RV/ TLC were normal or near normal (Table I).
Excised lungs of rats killed immediately after inhalation were inflated to 3.5 kPa corresponding to total lung capacity and air dried.
FVC = forced vital capacity; FEV1 = forced expiratory volume in 1 s; TLC = total lung capacity; RV = residual volume; DLco = diffusing capacity of the lung for carbon monoxide; Sp[O.sub.2] = arterial oxygen saturation measured by pulse oximetry; A-aD[O.sub.2] = alveolar-arterial oxygen difference; ANA = antinuclear antibody; KL-6 = Krebs von den Lungen- 6; SP = surfactant protein; GAP = (gender (G), age (A), and two lung physiology variables (P) (FVC and DLco)).
In the present study, restrictive or obstructive patterns were defined when the total lung capacity (TLC) or the forced expiratory volume in 1 s/forced vital capacity (FE[V.sub.1]/FVC) were below the lower limit of normality.
[11] Lung inflation to near total lung capacity is a major physiological stimulus for release of surfactant and prostaglandins into the alveolar spaces.
A total lung capacity <80% of the predicted value for a patient's age, race, sex and height defines the restrictive pathophysiology.
Pulmonary function test revealed significant restriction: forced vital capacity (FVC): 1.17 liters, 36% of predicted, forced expiratory volume in 1st second (FEV1): 0.98 liters, 40% of predicted, (FEV1/FVC) 84, total lung capacity (TLC): 58% of predicted, and diffusion lung capacity for carbon monoxide (DLCO) being significantly reduced, at 53% of predicted.
Pulmonary function testing was performed in accordance with the American Thoracic Society and European Respiratory Society standards and included the following parameters: Percent of predicted normal forced vital capacity (FVC%Pred), percent of predicted normal forced expiratory volume in 1 s (FEV1%Pred), FEV1/FVC%Pred ratio, percent of predicted normal total lung capacity (TLC%Pred), and percent of predicted normal diffusing capacity of the lung for carbon monoxide (DLCO%Pred).
The child then takes a full, deep inspiration, aiming for total lung capacity (TLC), and then immediately gives a maximal 'blast' of expiration and a full exhalation, i.e.
This approach has the advantage of graphically displaying the time course of change in all of the relevant operating lung volumes throughout exercise relative to total lung capacity (TLC).
Eric Jaeger Master Lab pulmonary function equipment was used to measure the forced vital capacity (FVC), forced expiratory volume in one second (FEV1), forced expiratory flow 25-75% (FEF25-75), total lung capacity (TLC), residual volume (RV) and diffusion capacity for carbon monoxide (DLCO).

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