Let's assume that a few D.C. politicians targeted a natural monopoly and raised their corporate tax rate on profits from the current 21 percent to 50 percent? Let's also assume that the politicians were so proud of what they did that they started to brag in public that they were "standing up for the people." Question: Will the monopoly end up paying those higher taxes? Will they be able to recover all the new taxes they will pay? Multiple Choice The monopoly won't be able to recover. All the extra taxes that they will pay will be lost. The monopoly will never be able to recover that lost money ever again. The monopoly will be able to recover the new tax expenses. The monopoly can almost always raise prices and it will lose nothing because monopolies have inelastic demand curves. This makes it easy for them to raise prices. Paying the extra taxes will be no problem because they can easily raise prices. The monopoly will need to cut prices in order to sell more and make enough revenues to pay any additional taxes. They will still be able to effectively maintain their MC = MR profit maximization. This type