Asked by Lauren Knight on Jun 13, 2024
Verified
During recessions,our capacity utilization rate usually falls below
A) 90.
B) 80.
C) 70.
D) 60.
E) 50.
Capacity Utilization Rate
A measure of how well a company or economy is using its productive capacity, expressed as a percentage of total potential output that is actually being realized.
Recessions
Periods of temporary economic decline during which trade and industrial activity are reduced.
- Comprehend the effects of economic downturns on investment strategies and the rate of capacity utilization.
Verified Answer
AS
akashdeep singhJun 19, 2024
Final Answer :
B
Explanation :
During recessions, the capacity utilization rate typically falls below 80% as businesses reduce production in response to lower demand.
Learning Objectives
- Comprehend the effects of economic downturns on investment strategies and the rate of capacity utilization.