4. Answer the following questions: a. Mr. S. owns/runs a firm in perfect competition. The government decides to start charging a yearly licensing fee for firms in the market to stay in business. The fee is $500 regardless of the firm's output. Question: Does this represent a fixed cost or a variable cost? b. Once the government imposes the yearly licensing fee in part a, which of the following cost curves (on the graph for Mr. S.'s firm) would be affected? Choose from: average fixed cost, average variable cost, marginal cost, average total cost c. Will the cost curves (from part b) shift UP or DOWN on the graph (as a result of the licensing fee)? d. Will the quantity/output made by Mr. S.'s firm change as a result of the licensing fee? e. Will the amount of profit/loss made by Mr. S.'s firm be changed as a result of the licensing fee