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Lizzie hires students at $70 a day to paint houses. She leases equipment that costs $100 a day.
Suppose that Lizzie doubles the number of students she hires and doubles the amount of
equipment that she leases. Describe Lizzie's long-run average cost curve if she experiences
diseconomies of scale. If Lizzie experiences diseconomies of scale, her long-run average cost
curve A. slopes downward B. slopes upward C. shifts downward D. shifts upward E. is
horizontal

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  • 1. Lizzie hires students at $70 a day to paint houses. She leases equipment that costs $100 a day. Suppose that Lizzie doubles the number of students she hires and doubles the amount of equipment that she leases. Describe Lizzie's long-run average cost curve if she experiences diseconomies of scale. If Lizzie experiences diseconomies of scale, her long-run average cost curve A. slopes downward B. slopes upward C. shifts downward D. shifts upward E. is horizontal