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over-capacity working


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Production in a firm or an industry above what is normally regarded as its capacity. This is possible because capacity itself is calculated on a conventional basis relative to a standard set of working conditions. It is possible to boost output temporarily above normal capacity levels in an emergency, by working more than the normal number of shifts, deferring staff holidays and training and maintenance of equipment, or making use of obsolete equipment which is so expensive to operate that it is not normally counted as part of capacity.

Subjects: Economics.


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