Owing to the symmetry of the problem, a lump-sum tax would have exactly the same short-run effect on labour allocation and output of the LMF as an increase in the rental rate of capital, whereas short-run output of a CF would remain unaffected. Moreover, in an oligopolistic market, price is reduced since prince is a negative function of output and output is positively related to labohr inputs. The same result is obtained in the case of a sales or turnover tax as shown by Jacquemin and Steinherr(1975) while price is increased and output reduced in a CF. Only taxes on value added by labour leave the short-run equilibrium of the LMF unaffected, as with leave the lump-sum tax imposed on a CF.