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Overproduction: meaning, definitions and examples

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overproduction

 

[ ˌoʊvərprəˈdʌkʃən ]

Noun
Context #1 | Noun

economic issue

Overproduction refers to the production of more goods or services than are necessary to meet demand. This phenomenon can lead to excess supply, which may result in a decrease in prices and potential losses for producers. Overproduction is often linked to economic cycles and can have significant impacts on market stability.

Synonyms

excess production, overabundance, surplus production.

Examples of usage

  • The factory faced overproduction, leading to surplus inventory.
  • Overproduction in agriculture caused prices to plummet.
  • To mitigate overproduction, the company adjusted its manufacturing schedule.

Etymology

The term 'overproduction' originates from the prefix 'over-', meaning too much or excessive, and the word 'production', which comes from the Latin 'productio', meaning 'to lead forth'. The concept gained prominence during the industrial revolution when advancements in technology and methods allowed for mass production. In the late 19th and early 20th centuries, economists began to discuss overproduction in relation to market cycles and its role in economic recessions. The term has been used in various contexts, particularly in reference to agriculture and manufacturing, where it identifies the imbalance between supply and demand. Understanding overproduction is crucial for economists, policymakers, and businesses in order to manage resources effectively and maintain economic stability.

Word Frequency Rank

Positioned at #21,449, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.