Which of the following industries is most likely to have low equipment utilization?

• A. Electric power generation
• B. Automobile manufacturing
• C. Seasonal agriculture
• D. Telecommunications

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of equipment utilization, which refers to the extent to which physical capital (machinery, equipment) is used over a period of time. High utilization means equipment is used continuously or near full capacity, while low utilization means equipment is idle for significant periods.
2. Step 2: Analyze each industry in terms of how consistently their equipment is used throughout the year. For example, electric power generation and telecommunications typically operate continuously to meet constant demand, implying high equipment utilization.
3. Step 3: Consider automobile manufacturing, which may have some fluctuations but generally runs production lines regularly to meet steady demand, leading to relatively high equipment utilization.
4. Step 4: Examine seasonal agriculture, where equipment use depends heavily on planting and harvesting seasons. Outside these periods, much of the equipment remains idle, resulting in low equipment utilization.
5. Step 5: Conclude that seasonal agriculture is most likely to have low equipment utilization because its equipment is used intensively only during certain times of the year, unlike the other industries that operate more consistently.