is not merely due to a shifting of fixed cost as a ratio 
ot Ey to the cricel 1 IIE Ek to lead to decreases 
in some or all of the utilisation rates - given the growth 
rate of capital.ozud( mugen vara Vhs og adm Aa! 
Again, should the growth rate of capital decline, given 
the gross profit margins and the fixed cost in relation 
to capacity, some utilisation rates will have to fall. 
This is the usual adjustment to be expected during 
a recession. If low utilisation persists over 
a longer time there may be an alternative adjustment 
- the reduction of gross profit margins due to new entries 
and intensified competition which may then restore 
ype] Liha 
‘he former rate of utilisation.