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Economics of idle capacity-an exercise in methods
(Cochin University of Science and Technology, 1998) Annamalai, V.
Idle capacity in the sense of excess of fixed production facilities in relation to normal turnover will add to cost of production without adding to value and also could result in the wastage of capital, a scarce resource. Identification and quantification of idle capacity in fish processing industries is a difficult task given the high seasonality of raw material a short season could remain unused for better part of the year. Under what price and cost conditions such production capacity could turn idle or otherwise is explored using the welknown technique of marginal analysis.