Final answer:
To find the profit-maximizing output for a monopolist, calculate the profit at each quantity (price times quantity minus total cost) and select the highest profit where MR equals MC. The price charged will be the highest price consumers are willing to pay at that quantity.
Step-by-step explanation:
To determine the profit-maximizing output and price for a monopolist, one must examine the relationships between quantity, price, and total cost. A monopolist maximizes profit by producing the quantity at which marginal revenue (MR) equals marginal cost (MC), and then charges the highest price consumers are willing to pay for that quantity, as indicated by the demand curve.
In this scenario, to find the profit-maximizing output, we calculate the marginal revenue for each additional unit sold (the change in total revenue from selling one more unit) and compare it to the marginal cost (the change in total cost from producing one more unit). We look for the quantity where MR equals MC, which is not provided in this data, but we can infer from the total revenue and total cost. The profit at each quantity level can be found by subtracting the total cost from the total revenue (Price per Unit times Quantity).
By comparing these profits, the highest profit can be found at the quantity before the marginal cost exceeds the marginal revenue. The price charged will be the price consumers are prepared to pay for that quantity, as per the demand curve. For example, if the highest profit is found at quantity 3, the price per unit will be $15, leading to a profit of $(3*$15)-$32 = $13.