Capacity utilization is the extent to which an enterprise or a nation actually uses its installed productive capacity. It is the relationship between actual output that `is` actually produced with the installed equipment, and the potential output which `could` be produced with it, if capacity was fully used. ==Economic significance== If market...
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The Federal Reserve's estimate of the percentage of factory capacity that is being used. Published monthly, capacity utilization rarely exceeds 90% because production costs become too expensive after that point. A high rate of capacity utilization — over 85% — suggests inflation is on its way.
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http://www.encyclo.co.uk/visitor-contributions.php
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