Capacity constraints
What Capacity constraints means in Economics A-Level, as defined for AQA.
Definitions of Capacity constraints
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Reference: AQA
Beyond a certain point, the addition of variable factors leads to a fall in marginal returns because workers get in each other's way or must wait to use equipment.
Limits such as congestion that can introduce rivalry to a previously non-rival good, as one extra user reduces the benefit for others.
Topics that use Capacity constraints
- Public goods, private goods and quasi-public goods (AQA A-Level)
- The law of diminishing returns and returns to scale (AQA A-Level)
Related terms
- Costs of production
- Diminishing marginal returns
- Economies of scale
- Environmental market failures
- Excludability
- Factor inputs
- Factors of production
- Free-rider problem
Using Capacity constraints in the exam
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