A profit maximizing monopolist faces a downward sloping demand curve with price elasticity of demand equal to -5. Based on this information we can infer that the monopolist will charge a price that is:
A) 25% higher than the marginal cost
B) 40% higher than the marginal cost
C) 25% lower than the marginal cost
D) 40% lower than the marginal cost
E) equal to the marginal cost