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In Studies in the Economics of Overhead Costs (1923), Clark developed his theory of the acceleration principle that investment demand can fluctuate severely if consumer demand fluctuations exhaust existing productive capacity.
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"Unlike past concerns, the current situation reflects an increasing fear that existing reserves and productive capacity have become subject to potential geopolitical adversity," Mr. Greenspan said in a speech here to the National Italian American Foundation, according to a text of his remarks.
Under that view, there is less slack, or unused productive capacity, than existing models would predict.
"It's appalling they suggest that solution when they have no bloody idea of the productive capacity of existing wells," said Robertson.
Given the new machinery and four production staff, full productive capacity has been carefully measured.
Given the estimated amount of spare productive capacity, this is not surprising – output will have scope to grow as existing assets are utilised and people are reabsorbed into the labour force.
The multibillion-dollar question is just how quickly Cantarell will lose its productive capacity, and whether Pemex will be able to coax more oil out of existing fields to take up the slack while it searches for new deposits.
In March 1971, Texas reached maximum productive capacity.
And productive capacity is not fixed.
Productive capacity varies from person to person.
Note that if a business continues to replace existing facilities in kind and if the prices of these facilities remain constant, then the numerator (i.e., capital expenditures less depreciation) approximates the cost of real growth in productive capacity.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com