Utilization Is Defined as the Ratio Of

question 67

Multiple Choice

Utilization is defined as the ratio of:

• A)actual output to effective capacity.
• B)actual output to design capacity.
• C)design capacity to effective capacity.
• D)effective capacity to actual output.
• E)design capacity to actual output.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input, used in decision-making about resource allocation.

Price-Taker Market

A market scenario in which sellers accept the market price as given because they have no influence over it, often due to high competition and standardized products.

Marginal Product

The additional output that is produced by utilizing one more unit of a variable input, holding all other inputs constant.

Labor Market

The marketplace in which employers find workers and workers find jobs, characterized by supply and demand for labor.