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1. Industrial Capacity

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   The operating level of industrial capacity is typically expressed as the utilization rate ($\text{UR}$), calculated as the ratio of actual output ($Qa$) to maximum potential output ($Qp$):
   $$\text{UR} = \frac{Qa}{Qp} \times 100\%$$
   Classical economic models traditionally held that as $\text{UR}$ approaches $100\%$, the marginal cost of production increases due to the forced adoption of less efficient, secondary production lines (often dubbed 'Shadow Lines'). However, research from the [Zurich Institute of Applied Metaphysics](/ent…