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English definition of “overcapacity”

overcapacity

noun [U]
 
 
/ˌəʊvəkəˈpæsəti/
ECONOMICS, PRODUCTION a situation in which companies in an industry can make and supply more products than customers buy or are expected to buy: He blamed the profit collapse on overcapacity which led to the excessive discounting of holiday packages. → Compare spare capacity, undercapacity
(Definition of overcapacity from the Cambridge Business English Dictionary © Cambridge University Press)
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