Efficiency will usually be greater than utilization because
A) Design capacity is less than effective capacity.
B) Design capacity is greater than effective capacity.
C) Design capacity equals rated capacity.
D) Effective capacity equals design capacity.

Question

Quizplus · Accepted Answer

Efficiency is calculated based on effective capacity, while utilization is based on design capacity. Since design capacity is the maximum output under ideal conditions and is typically greater than effective capacity (which accounts for real-world constraints), efficiency (output/effective capacity) will usually be greater than utilization (output/design capacity).

Efficiency Will Usually Be Greater Than Utilization Because