When a per unit tax is imposed on the sale of a product of a monopolist, the resulting price increase will:

A) always be less than the tax.
B) always be more than the tax.
C) always be less than if a similar tax were imposed on firms in a competitive market.
D) not always be less than the tax.

The price increase will not always be less than the tax because it depends on the elasticity of demand for the monopolist's product. If the demand is relatively inelastic, the monopolist can pass on most or all of the tax to consumers in the form of a higher price, resulting in a price increase that is greater than the tax. However, if the demand is relatively elastic, the monopolist may not be able to pass on the full amount of the tax, resulting in a price increase that is less than the tax. In a competitive market, the price increase would be less than if a similar tax were imposed on a monopolist because there are many firms competing, which puts downward pressure on prices.