Final answer:
The monopolist Firm C with a marginal cost of $48/unit and an elasticity of demand of -3 will set the profit-maximizing price at $72 per unit.
Step-by-step explanation:
A monopolist, like Firm C with a marginal cost of $48/unit and facing an elasticity of demand of -3, will set their profit-maximizing price based on the relationship given by the formula: P = MC/(1 + (1/E)).
Here, P is the optimal price, MC is the marginal cost, and E is the price elasticity of demand.
Plugging in the values gives us P = $48/(1 + (1/(-3))) which simplifies to P = $48/(1 - 1/3) = $48/(2/3) = $72.
Therefore, Firm C's profit-maximizing price would be $72 per unit.
This calculation assumes that the firm is able to perfectly price discriminate and charge the maximum price consumers are willing to pay while still making a sale.