Topic Videos
Capacity Utilisation and Fixed Costs
- Level:
- AS, A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 22 Sept 2020
In this video we use Premier Inn as a mini case study in the economic importance of spare capacity for a firm’s operating costs.
Capacity is a measure of how much output a business can produce over a given period e.g. customers per day, capacity of units from a production line.
Capacity utilisation measures the proportion (percentage) of a firm’s total capacity is used over a given time period. i.e. (actual output / capacity) x 100%
You might also like
Trip Advisor Reviews - Fixed and Variable Costs in Action!
27th January 2016
How to Calculate Short Run Costs
Topic Videos
Elasticity of Supply of Different Products
Study Notes
Economic Growth (Revision Quizlet Activity)
Quizzes & Activities
Is cyclical unemployment starting to rise in the UK economy?
19th December 2022
2.4.3 The Output Gap (Edexcel A-Level Economics Teaching PowerPoint)
Teaching PowerPoints
Daily Email Updates
Subscribe to our daily digest and get the day’s content delivered fresh to your inbox every morning at 7am.
Signup for emails