Suppose a Specific Excise Tax Is Imposed on a Monopolist's

Multiple Choice

Suppose a specific excise tax is imposed on a monopolist's product. In order to maximize profits, the monopolist will produce:

A) less output and charge a higher price.
B) the same output and charge a higher price.
C) the same output and charge the same price as before the tax.
D) more output and charge a lower price.