What Is A Underutilization In Business?

What Is A Underutilization In Business? When full utilisation of the potential/capacity of the workforce and resources essential for optimized growth rate is not being practiced, it is termed as underutilisation. An organization suffering from underutilization issues goes through disturbing input-output ratio, goods supply, and profit management. What is the definition of underutilization? transitive verb.

Where Would A Point Of Underutilization Appear On A Production Possibilities Graph?

Where Would A Point Of Underutilization Appear On A Production Possibilities Graph? Answer: It appears below or left the side of the on Production Possibility Curve. Explanation: Underutilization means that an economy is producing below the production possibilities curve and there can be various reasons for Underutilization such as Famine, Disaster, War, Disease and Unemployment.