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The Harvard-educated investigator, for example, won't just sit around wringing her hands when she doesn't immediately understand something--she'll make use of all the intellectual tools at her disposal to research and probe. Likewise, even the "cannon fodder" expendable characters should go to a lot of trouble to avoid dying, unless the author has characterized them as suicidal or deeply stupid or proven some motivation for a death wish. "Maximum capacity" will, of course, vary from character to character. A ten-year-old protagonist in a middle grade adventure will have fewer resources than the Navy SEAL/brain surgeon in a techno-thriller. The trick is to know one's characters thoroughly.
In every scene, Frey says your character's actions and reactions have to pass the "would s/he really ____ ?" test. Does the action/reaction fit her personality? Is he making full use of his personal resources, know-how, experiences? These lines of questioning can open up plot to intriguing new possibilities.
How might "maximum capacity" make your plots more compelling? In what circumstances do you think Frey's "rule" might not be the best way to go?