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Reference.org
Capacity utilization
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<p>Capacity utilization or capacity utilisation is the extent to which a firm or nation employs its installed <a href="/facts/Productive_capacity/FhyA894V">productive capacity</a> (maximum output of a firm or nation). It is the relationship between <a href="/facts/Output_(economics)/7joYTeNk">output</a> that <i>is</i> produced with the installed equipment, and the potential output which <i>could</i> be produced with it, if capacity was fully used. The Formula is the actual output per period all over full capacity per period expressed as a percentage. </p>