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The efficient price would be __ than the $12 while the output would be __ than 100 unites

User Rajaraman
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Final answer:

Both the efficient price and output would be lower than the given values.

Step-by-step explanation:

The efficient price would be less than the $12, while the output would be less than 100 units. In the given example, different production plants have different average costs of production per toaster oven.

Plant M can produce toaster ovens more cheaply than plant S due to economies of scale. Similarly, plants L or V can produce more cheaply than S or M. However, the economies of scale end at an output level of 150. Therefore, it can be inferred that both the efficient price and output would be lower than the given values.

User Elving
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