production quotas

Production quotas are limits set by authorities or organizations that specify how much of a certain product or resource should be produced within a given period. These limits aim to regulate supply, manage market stability, or ensure fair resource allocation. For example, a government might establish a quota on how many gallons of water a farm can use or how many cars a factory can produce. By setting these targets, producers can plan their operations, and regulators can prevent overproduction, shortages, or market imbalances, helping to maintain economic or environmental balance.