Meaning of “undercapacity” in the English Dictionary

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"undercapacity" in Business English

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undercapacitynoun [ U ]

uk /ˌʌndəkəˈpæsəti/ us ECONOMICS, PRODUCTION

a situation in which companies in an industry are making and supplying fewer products than customers buy or are expected to buy:

Given the attractiveness of the venue, this undercapacity can be expected to continue in the medium term.

(Definition of “undercapacity” from the Cambridge Business English Dictionary © Cambridge University Press)