why potential output is not maximum output?
Answers
Losses is part of every system, potential output is required to run a system efficiently.
Potential output of a system can be defined, as the output obtained in terms of goods and other resources when the system is at its optimum conditions.
The maximum output of the system is the output, where there are no losses in the system, in accordance to the input provided to it.
Since losses always exist, potential output can never be achieved in any output of any system i.e, no system is 100% efficient.
Answer:
Losses is part of every system, potential output is required to run a system efficiently.
Potential output of a system can be defined, as the output obtained in terms of goods and other resources when the system is at its optimum conditions.
The maximum output of the system is the output, where there are no losses in the system, in accordance to the input provided to it.
Since losses always exist, potential output can never be achieved in any output of any system i.e, no system is 100% efficient.