A lump-sum tax is levied on the firm.  
*Show whether the MC, the ATC, or both/neither shift
and in which direction if they do (MC1), (ATC1).
*indicate if there is a NEW quantity and label it (Q1).
ERASE
A per-unit tax is levied on the firm.  
*Show whether the MC, the ATC, or both/neither shift
and in which direction if they do (MC1), (ATC1).
*indicate if there is a NEW quantity by and label it (Q1).
ERASE
A lump-sum subsidy is levied on the firm.  
*Show whether the MC, the ATC, or both/neither shift
and in which direction if they do (MC1), (ATC1).
*indicate if there is a NEW quantity and label it (Q1).
ERASE
A per-unit subsidy is levied on the firm.  
*Show whether the MC, the ATC, or both/neither shift
and in which direction if they do (MC1), (ATC1).
*indicate if there is a NEW quantity by and label it (Q1).