Productive capacity

Sometimes seen as a more formal or materialistic reference than its synonym ‘productive power’.
Industrial man has greatly increased his productive capacity through harnessing energy other than his own and through delaying consumption to build up capital stock. The combination of labour, capital, and energy can turn metal ores into cars, clay into houses, and chemicals into food. Some indication of the importance that is attached to energy can be obtained by noting its share within the GDP." [Ormerod]
The first assumption concerns the possibility of closing all the material cycles in the production system as effectively as possible. Agriculture makes use of nature’s productive capacity, tapping outputs from the system in the form of products. If agriculture is to be maintained over a lengthier period, inputs need to be added to the system in order to compensate for the outputs which have been tapped off. By definition, it is never possible to convert 100% of inputs into outputs; this implies that some of the inputs will inevitably be lost to the environment in the form of leakages. [Latesteijn, 2003]
Productive capacity is the maximum possible output of an economy. According to the United Nations Conference on Trade and Development (UNCTAD), no agreed-upon definition of maximum output exists.
A nation’s productive capacity reflects the potential output of an economy. [Pettinger]
The analysis of the productive capacity of a firm must be made in the context of the use of such capacity to generate capital services such as machine hours, storage, and operating space to be used in the production of goods and services that are part of the firm's output mix. [Salas]
== Rhizomata ==
Power; Production