potential output

Show Summary Details

Quick Reference

The output which could be produced with the available labour, capital, and technology. For an individual firm, potential output is the output that could be produced with present capital and technology, allowing for recruitment of labour. Potential output for the economy as a whole is not necessarily the sum of potential output for all firms, since while any one firm could obtain extra inputs of fuel and labour, it might not be feasible for them all to expand at once.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.