Ever walk into a half-empty restaurant and wonder why they have so many tables? That's a classic case of excess capacity right there. Excess capacity is all about having more ability to make stuff than people actually want to buy. So, if you're running a factory or, say, managing a fleet of trucks and can’t put them to full use, you’ve got excess capacity on your hands.
Ever wonder why some businesses have empty seats or unsold products? That's excess capacity. It's like having a big party planned, but only a few friends show up. Now you've got extra food and drinks just sitting there.
Think of excess capacity like having too many cooks in the kitchen. Sometimes it's great - you can whip up a feast in no time. Other times, it's a recipe for disaster.
Ever wonder why some businesses seem to have too much stuff and not enough customers? That's excess capacity. It's like buying a huge pizza when you're not that hungry.
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