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Meaning of potential output

 

 

 

Potential output

 

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Business glossary

 

Meaning of term potential output :

 

Potential output for an economy is the output that could be achieved if all resources were to be fully deployed. Potential output tends to grow each year as technology and productivity improve each year. The potential output for an individual firm is what they could produce with all their given resources.

 

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Meaning of term potential output

 

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