Question

I


(b) Utilization of a person's efforts for individual gain.

Answer 1

Answer:

To understand utilization and utilization rates, let’s imagine we have a widget-making machine. The machine has a maximum number of widgets it can produce in a day, because it takes a certain amount of time for the machine to manufacture one widget.

Let's say, assuming the machine runs non-stop, it can produce 1,000 widgets a day. That's the machine’s total available capacity. But of course, it can't run non-stop, every day, all day. It needs to shut down occasionally for maintenance and repairs, user training, and any number of other reasons. This means it will never make as many widgets as it's capable of producing.

The difference between the number of widgets it can make compared to the number of widgets it makes is the basis for the machine's utilization rate.

While utilization rate is generally applied to people, not objects, you get the idea.