Recently, the U.S. Congress increased per-gallon subsidies on the production of ethanol (which is a fuel additive). Ethanol is produced from corn. Any farmer that grows corn can produce ethanol because the variety of corn is irrelevant, and the resulting ethanol is the same from any type of corn. In the U.S., there are over 300,000 farms that grow corn (and it's easy for farmers to switch from other crops to grown corn instead). Assume that ATC is "U-shaped", MC is not constant, and that firms were in LR equilibrium prior to the increased subsidy