AN EVALUATION OF THE EFFICIENCY OF THE USE OF PRODUCTION POTENTIAL IN MODERN ECONOMIC CONDITIONS

Production potential is the maximum production capacity of the factory. enterprises must be aware of this potential and take advantage of it by incorporating it into their labor and capital decisions to meet demand growth. This information helps to make the right management and internal decisions and increase the efficiency of production. In the conditions of the market economy, the main indicator of productivity is the increase of profit and costs per resource unit. Technical and organizational measures increase the volume of output, reduce costs and increase labor productivity. Economic efficiency is determined by the ratio of the product received to the labor used for production. Evaluation of economic efficiency is carried out on three groups of indicators: volume indicators (quantity of production), final results (quality of production) and social results (living standard of the population and impact on the environment). The quality of production capacity and the application of innovations serve the enterprise's goals and improve economic performance by creating new products. Keywords: Efficiency of production capacity, economic efficiency, types of efficiency, market economy, quality of production, volume indicators, final indicators, indicators of social results, measurement of efficiency.