The government prefers an ad valorem tax to a specific tax that reduce

The government prefers an ad valorem tax to a specific tax that reduces the monopoly output by the same amount because

A) consumers are not harmed by the ad valorem tax.
B) the monopoly prefers the ad valorem tax.
C) consumers prefer the ad valorem tax.
D) the ad valorem tax transfers more revenue from the monopoly to the government.

ANSWER

D