Limiting production capacity

Description

Limiting production capacity involves deliberately restricting the output of goods or services to address issues such as resource depletion, market oversupply, or environmental degradation. This strategy aims to balance supply with demand, stabilize prices, conserve resources, and reduce negative externalities. Practical actions include setting production quotas, capping facility outputs, or implementing regulatory controls, thereby remedying problems of overproduction, waste, and unsustainable exploitation of natural or economic resources.