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Capacity Utilization Rate |
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Capacity utilization rate The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion. Capacity Utilization Rate The extent to which a company uses its facilities at capacity, expressed as a percentage. That is, the capacity utilization rate states how much a company produces as a percentage of what it can produce. For example, if a factory produces 1,000 widgets per day but could produce 2,000 for the same cost, it has a capacity utilization rate of 50%. The capacity utilization rate is most useful for companies producing goods rather than services because goods are simply easier to quantify. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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| In both North America and Western Europe, carbon black capacity utilization rates should increase through 2008 and exceed 90%, although neither region will approach the close to 100% capacity utilization rate in Japan. If the dollar falls by enough to reduce the current account deficit by 25 percent, the country's capacity utilization rate will rise from 79 percent to 86 percent. moving upward, pushing the capacity utilization rate above 90 percent. |
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