Updated: Aug 20, 2021

The maximum output of goods and services a firm or an economy is capable of producing. See also excess capacity; spare capacity.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.