excess capacity

Show Summary Details

Quick Reference

The part of the output of a plant or process that is not currently being utilized but which, if it could be, would reduce the average cost of production. The excess capacity is thus the amount by which the present output must be increased to reduce the average cost per unit to a minimum.

Subjects: Economics — Business and Management.

Reference entries

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