Suppose that a manufacturing firm previously produced at their capacity of 1,000 units. A strong recession...
Suppose that a manufacturing firm previously produced at their capacity of 1,000 units. A strong recession is currently causing the firm sell 400 fewer items than before. What is the firm's current capacity utilization?
600
400
40%
60%
1,000
Homework Answers
Option 4. 60%
Explanation: Capacity utilization = current production/production capacity * 100 = (1000-400)/1000 * 100 = 600/1000*100 = 0.60*100 = 60%
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