Effective capacity is the:

a. sum of all of the organization's inputs.

b. capacity a firm expects to achieve given the current operating constraints.

c. minimum usable capacity of a particular facility.

d. average output that can be achieved under ideal conditions.

e. maximum output of a system in a given period.

option B

Explanation:

The correct answer is option B

Effective capacity is the capacity of a firm to achieve the given target will all the constraints.

Effective capacity of an company can be calculated by actual capacity divided by the efficiency of the company.

it can be explained by an example

Assume the capacity of company to produce toy is 49 per hours and the efficiency of the production is 70 %

so the effective capacity will be equal to 49/0.7 = 70

hence, effective capacity will be 70