Answer:
80%
Explanation:
The capacity utilization rate evaluate the proportion of potential economic output that is actually realized.
To solve for theoretical utilization, we use the following formula as given below;
Theoretical Utilization = {p/(ma)}×100
Where we have our variables as,
p=16
m=4
a=5
Imputing variables into the formula we have
Theoretical utilization = {16÷(4×5)}×100
= {16/20}×100
=0.8×100
=80%