Suppose a cell-phone service provider has monopoly rights for a geographical region and is earning monopoly profits. If the government then imposes a lump-sum tax (i.e., a tax that is independent of the level output) of $X on this firm, the effect is

a reduction in output and an increase in price.

an increase in output and a decrease in price.

an increase in consumer surplus due to the tax revenue.

to increase the firm's marginal costs and reduce its profit by $X.

to increase the firm's average costs and reduce its profit by $X.