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The boundaries of the production capacity Maximum output, which can be obtained with the full and effective utilization of economic resources - labor, land and capital. Given that economic resources are limited, the company can not produce unlimited quantities of goods and services. Production capacities characterize the productive capacity of society. Existing productive resources should be shared and combined in such a way that their use provides the greatest contribution to the production of necessary goods and services. Effective use of available resources also depends on the use of the most advanced production technologies.
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The boundaries of the production capacity.
The boundaries of the production capacity Maximum output, which can be obtained with the full and effective utilization of economic resources - labor, land and capital. Given that economic resources are limited, the company can not produce unlimited quantities of goods and services. Production capacities characterize the productive capacity of society. Existing productive resources should be shared and combined in such a way that their use provides the greatest contribution to the production of necessary goods and services. Effective use of available resources also depends on the use of the most advanced production technologies.
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