4 Marker Capacity Utilisation Flashcards
1
Q
Capacity utilisation
A
Measures level of output a business is producing in relation to its capacity.
2
Q
Application - Capacity utilisation fell in this instance 91.5 - 78.2 - due to global health crisis (application in text)
What does this mean for easyJet
A
Means more empty seats for easyJet
3
Q
How does this affect the average unit costs
Why?
A
Means there’s an increase in average unit costs as costs now spread over lesser passengers
