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Capacity utilizations are the measures of an extent that is the capacity of eth productivity of the business which is being used. Average production cost which tends to fall as the output rates for the higher utilizations to reduces the rises of the, for creating the competitive business.
Use the Fed's data download program (Links to an external site.)Links to an external site. at its industrial production and capacity utilization site (Links to an external site.)Links to an external site. to obtain historical capacity utilization data
(recommendation: focus on manufacturing and get annual data going back
to 1948, which is the beginning of the time series). Plot the data
on a line graph (Links to an external site.)Links to an external site.. What do the data indicate?
Form the Fed’s data, for the industrial production and the capacity utilizations, to obtain the historical capacity utilization, that focused on the manufacturing and the obtain the total data, plot of the line graph indicate;
Popular type of the graph is the
line graph, each value in the series is shown by the data of the points, and
normally these data are connected unless there are spaces which are caused by
the missing data. Utility of the line graphs by the series which have the lots
of the data’s.
Are these findings to be expected? Explain.
All these findings are expected, because
the separate set of the data as well as the documentation represents the seasonally
adjusted indexes in the favor of the total industrial production, manufacturing
mining, as well as the utilities for the originally published.
Propose at least two factors that might explain long term trends
in capacity utilization. Discuss these factors and their
relationship to capacity utilization in detail. Cite outside sources
to strengthen your argument.
Demand side factors
Supply side factors
The other factors illustrated
from both a concept of capacity utilization. Load-shedding issues are a major
factor affecting capacity utilization in industries. During a case of demand
side factors, 10% contemplate a lack of domestic demand as well as domestic competition
as important factors. On a supply side, 63% of firms ranked load-shedding as a
very significant factor affecting capacity utilization. The average supply
factors are more significant in calculating capacity utilization in a
manufacturing sector as associated to demand side factors. Load-shedding is measured
a most significant factor calculating capacity utilization by all firms nevertheless
of their size or factor intensity.
What, if anything, should be done to reverse prevalent
trends? Again, discuss in detail.
The reversal is the variations during the direction of the price trends that can be positive as well as the negative against the prevailing trend. The reverse trend is undergoing, for their recognizable variations during the price structure. Trend reversal is the rally for the corrections
References of
KALIM, RUKHSANA K. , and et.al. 1998. "FACTORS
AFFECTING CAPACITY UTILIZATION IN MANUFACTURING SECTOR OF PAKISTAN:." Pakistan
Economic and Social Review 36 (2 ): 171-182.
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