Consider a Monopolist That Is Earning Profits in the Long

Consider a monopolist that is earning profits in the long run. If the government imposes a lump- sum tax on this monopolist (that is less than its profits) , then

A) new firms would enter the industry.
B) the output would remain the same while price increased.
C) output would decrease and price to consumers would increase.
D) the monopolist would cease production.
E) neither output nor price would change.