Capacity utilisation

  1. Is usually near 100 percent.
  2. Represents the percents of the labour force that is employed.
  3. Is a measure of the proportional of the existing capital stock used for current production.
  4. Rise as the economy moves into a recession, since firm must replace unemployed workers with some other resources to maintain production.
Manish Listener Asked on 6th November 2014 in Finance.
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  • 1 Answer(s)

    Capacity utilisation is a measure  of the proportional of the existing capital stock used for current production.

    Monis Rasool Professor Answered on 21st April 2015.
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