Respuesta :
It ties up production facilities, and the resulting excess inventory simply sits idle.
Explanation:
Overproduction is the creation of inventories which cannot be delivered in the hands of companies. Overproduction, referred to as surplus production over consumption, is a quantitative measure. The propensity to overproduce goods is common for the capitalist system and contributes to an economic collapse.
The main reasons of overproduction are:
- Mismanagement of product
- Not actually knowing whatever the customer wants-only in case of output
- Desire to use full performance of workers until the end of the shift or the production of raw materials.
- Weak quality of the products involves more production in order to meet demand.
- Economic changes (underconsumption)
- Alters in the actions of customers (acquisition of capital)