Capacity describes your ability to do something or the amount something can hold. If your bird cage is at full capacity, you can't stuff one more feathered friend in there without causing a birdie claustrophobia.
From the Latin word capacitatem meaning “breadth, capacity,” capacity is a noun that in the simplest sense means "ability" or "capability": the capability of a room to hold a certain number of people, the ability of a law to change crime rates, your ability to pick up foreign languages. You might hear about factories working at "full capacity" — that means at full speed, producing as much as they possibly can.
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capability to perform or produce
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the amount that can be contained
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the power to learn or retain knowledge; in law, the ability to understand the facts and significance of your behavior
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an electrical phenomenon whereby an electric charge is stored
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the susceptibility of something to a particular treatment
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