Practical Capacity :


It refers to the production capacity of a firm taking into consideration various internal and external factors within which the firm operates .


Normal capacity :


It refers to the production capacity of a firm at which the firm can operate in normal situation


Maximum capacity :


It refers to the capacity at which the firm can operate using all the factors of production to fullest extent . in the capacity beyond which the firm can't produce more . A firm can't operate at this capacity for a long period .It causes damage to machine .In emergent situation this capacity is used .


Actual capacity :


 It refers to the production capacity of a firm at which the firm producing at present .It may any capacity from start to maximum .Usually the firm operate at normal capacity .


Idle capacity :


It refers to the capacity which remains idle in other word the capacity which remains unused .The reasons for such idle capacity is shortage of material , machine brokedown , power failure , waiting for instruction etc .

Idle capacity = Normal capacity -Actual capacity

Mousumi Manna

Mousumi Manna Creator

Hi, I am simple and imaginative

Suggested Creators

Mousumi Manna