Answer:
A) 0.83
Explanation:
the capacity utilization rate of spinning bikes = bikes used / total number of bikes available = 500 / 600 = 0.83
The capacity utilization rate measures the realized economic output. It is calculated by dividing total output by total level of potential output. Economic measurements always include opportunity costs, for example, the missed opportunity costs of unused spinning bikes = (1 - 0.83) x total number of bikes = 100 unused bikes or lost economic revenue.
