Overcapacity meaning

ō'vər-kə-păs'ĭ-tē
Overcapacity is defined as too much potential production available for the demand.

An example of overcapacity is too many people looking for work with few jobs available.

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Excessive capacity for the production of commodities or the delivery of services in relation to actual need.

The factory's overcapacity led to falling prices in the stores.

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Excess capacity for production or service, in relation to the level of demand.
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A capacity for the production of a commodity or product that is in excess of what is needed.
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Sentence Examples

  • Given that South Africa has a large generation overcapacity, the aim is clearly to export these units.

  • It blamed overcapacity on North Atlantic routes, price competition from low-cost airlines and higher fuel prices.

  • There is existing overcapacity which will act as a barrier to entry.

  • There is a serious generation overcapacity, to which Mr Battle refers in his response.

  • These factors have caused significant overcapacity in the United Kingdom and in Western Europe generally.

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Words near overcapacity in the Dictionary