Which of the following statements accurately describe the differences between lump sum subsidies and per unit subsidies? Select all that apply.

Lump sum subsidies and per unit subsidies are two different ways that governments can support businesses or individuals. A lump sum subsidy is a fixed amount of money given all at once, regardless of how much is produced or sold. For example, if a farmer receives a lump sum subsidy of $5,000, they get that entire amount no matter how many crops they grow. On the other hand, a per unit subsidy provides a specific amount of money for each unit produced or sold, like $2 for every gallon of milk a dairy farmer sells. This means if the farmer sells 1,000 gallons, they would receive $2,000 in total, while if they sell 500 gallons, they would get $1,000.