Per Unit vs Lump Sum
| Type of Tax/Subsidy | Costs Affected | Curves That Shift | Effect on MC? | Effect on Quantity Produced? |
|---|---|---|---|---|
| Per unit | Variable costs | MC, AVC, ATC | Yes | Yes |
| Lump sum | Fixed costs | AFC, ATC | No | No |
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| Type of Tax/Subsidy | Costs Affected | Curves That Shift | Effect on MC? | Effect on Quantity Produced? |
|---|---|---|---|---|
| Per unit | Variable costs | MC, AVC, ATC | Yes | Yes |
| Lump sum | Fixed costs | AFC, ATC | No | No |