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Definition of productive capacity
the number of total units that could be
The real flow of cash that a firm could pay out forever in the absence of any change in
The maximum volume of products or services that can be produced given limitations of space,
a measure of production volume or some other activity base
The proportion of capacity that is able to be utilized to fulfil customer demand for products
Ability to borrow. The amount a firm can borrow up to the point where the firm value no
An assessment of ability and willingness to repay a loan from anticipated future cash flow or other sources.
Unused production capacity.
a short-run concept that represents the
see theoretical capacity
the long-run (5–10 years) average production
the physical production or service volume that a firm could achieve during normal working hours with consideration given to ongoing, expected operating interruptions
the estimated maximum production or
Capital expenditures required to replace productive
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