What is the significance of server resource limits in relation to AJAX and 500 errors?

Server resource limits (memory, CPU time, execution time) can cause 500 errors when handling AJAX requests. If an AJAX request requires excessive resources, the server may terminate the script, resulting in a 500 error. This is especially true for complex calculations, large data transfers, or poorly optimized code. Increasing these limits might resolve the issue, but optimizing code to reduce resource consumption is generally a better long-term solution. Contact your hosting provider for guidance on adjusting resource limits.