<p>What is a lump sum tax/subsidy and what are its effects in the SR and LR?</p>
<p>I dont get why it doesnt affect production or price in the SR, is it because everything has been produced when it is finally implemented?</p>
<p>ya whats the difference between lump sum and not lump sum?</p>
<p>lump sum doesnt affect MR in any way so it basically has no effects on Qty or price, but per-unit shifts either MR or MC</p>