| 单词 | capacity utilization |
| 释义 | capacity utilization Actual output as a percentage of capacity. Capacity is the maximum output firms could produce with their existing equipment. Because demand fluctuates and equipment is liable to break down, firms normally aim to have more capacity than the average level of demand, and less than 100 per cent capacity utilization. Actual capacity utilization is expected to fluctuate: if it remains persistently above its normal level, this suggests that investment in new equipment would be profitable. If capacity utilization remains persistently below its normal level, this suggests that some equipment, normally the oldest and least productive, is not worth the cost of maintaining it and should be scrapped. |
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