Upsilon Natural Gas, Inc. is a monopoly enjoying very high barriers to entry. Its marginal cost is \(\$ 40\) and its average cost is \(\$ 70\). A recent market study has determined that the price elasticity of demand is 1.5 . The company will most likely set its price at:

A. \(\$ 40\).

B. \(\$ 70\).

C. \(\$ 120\).