Normal capacity utilization is the level of capacity that satisfies average customer demand over a period and takes into account seasonal, cyclical, and trend factors.

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Normal capacity utilization takes into account various factors that affect average customer demand over a period of time, including seasonal, cyclical, and trend factors. When a company operates at normal capacity utilization, it is able to meet its customers' needs without overproducing or underproducing.

Normal Capacity Utilization Is the Level of Capacity That Satisfies