Domar's approach is to define a coefficient of utilization u= 1 means full utilization of capacity. 1→0K(t) and show that u=r/ ps, so that u as r-ps < In other words, if there is a discrepancy between the actual and required rates(r≠pS), we will find in the end(t→>∞) either a shortage of capacity (u>1)or a surplus of capacity(u< 1), depending on whether r is greater of less than psDomar's approach is to define a coefficient of utilization ( ) ( ) lim t Y t u t→  = [u = 1 means full utilization of capacity.] and show that u = r / s, so that 1   u r s.   as In other words, if there is a discrepancy between the actual and required rates ( ) , we will find in the end either a shortage of capacity or a surplus of capacity , depending on whether r is greater of less than r  s (t → ) (u  1) (u  1) s