Which of the following statements is true?

a. if a tax is imposed on a product sold by a monopolist, the monopolist will maximize its profits by producing where marginal revenue equals marginal cost.
b. a monopolist will always charge the highest possible price.
c. if a tax is imposed on a product sold by a monopolist, the monopolist can increase its price to pass along the entire tax to consumers.
d. because a monopolist faces no competition, the demand for its product is perfectly inelastic.

Wisconsin snowmobile corp. is considering a switch to level production. cost efficiencies would occur under level production, and after tax costs would decline by $36,000, but inventory would increase by $300,000. wisconsin snowmobile would have to finance the extra inventory at a cost of 13.5 percent. a. determine the extra cost or savings of switching over to level production. should the company go ahead and switch to level production? b how low would interest rates need to fall before level production would be feasible?