Definition

A situation where there is more capacity to produce goods or provide services than is actually needed or demanded.

Example

The factory faced issues due to overcapacity, leading to wasted resources and lower profits.

Conversation

Have you heard about the factory's issue with overcapacity?

Yeah, it's crazy how they can't keep up with demand anymore.

I wonder how they plan to fix the overcapacity problem.

Hopefully, they find a solution soon; it could really hurt their business otherwise.

Synonyms & Antonyms

Root Explanation

Overcapacity → It is formed from "over-" (meaning excessively or beyond) and "capacity" (from Latin "capacitas", meaning the ability to hold or contain). The word "overcapacity" means the state of having more than the ability to hold or contain, often referring to exceeding limits.

Memory Tip

Think of 'over-' meaning excessively and 'capacity' meaning the ability to hold. This helps you remember that overcapacity refers to having more than what can be held.

Visually Confused Words