If a Monopolist's Profits Were Taxed Away and Redistributed to Its

Multiple Choice

If a monopolist's profits were taxed away and redistributed to its consumers,

A) inefficiency would remain because output would be lower than under competitive conditions.
B) inefficiency would remain, but not because output would be lower than under competitive conditions.
C) efficiency would be obtained because output would be increased to the competitive level.
D) efficiency would be obtained because output would be increased and profits removed.