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Q. Explain about Capacity Utilization?
Capacity Utilization: A company or economy's capacity represents maximum amount of output it can produce. Rate of capacity utilization, hence, represents proportion of capacity which is actually used in production. When capacity utilization is high (so that a facility is being used fully or near-fully), pressure grows for new investment to expand that capacity. Additionally, high capacity utilization tends to reduce the unit cost of production (Because capital assets are being used more efficiently and fully).
Which drug is likely to be the most profitable for its producer (in terms of average “per-drug” profit)?
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what is externalities and market inefficiency
the prevalence of excess capacity is the direct consequence of the existence of monopolistic competition
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