The federal government is considering levying taxes on smart phone manufactures. They are considering two proposals:

A lump-sum tax of $ 1m. On each manufacturer.

A tax of 8 100 per smart phone, paid by producers of smart phones.

(a) Which of the following curves–average fixed cost, average variable cost, average total cost, and marginal cost – would shift as a result of the lump-sum tax? Why? Show this in a graph, labeling the graph as precisely as possible.

(b) Which of these same four curves would shift as a result of the per-phone tax? Shoe this in a graph, again labeling as precisely as possible.