Lizzie hires students at $50 a day to do housecleaning. She leases equipment that costs $50 a day. Suppose that Lizzie doubles the number of students she hires and doubles the amount of equipment that she leases.
Describe Lizzie's longrun average cost curve if she experiences diseconomies of scale.
If Lizzie experiences diseconomies of scale, her longrun average cost curve
A. slopes upward
B. shifts upward
C. slopes downward
D. shifts downward
E. is horizontal