3. A pharmaceutical company obtains a patent for its new wonder drug, Monopolin, and becomes the only seller in the market. Demand for Monopolin is given by the following equation: PD = 45 Q Marginal revenue is given by the equation: MR = 45 2Q Marginal cost is given by the equation MC = 5 + 3Q a. Find the profit maximizing price and quantity of Monopolin. [2] b. Draw a diagram with Demand, Marginal Revenue, and Marginal Cost. Label on this diagram the values you found in part b. [2] c. Shade the area on the diagram corresponding to the deadweight loss. Calculate the size of the deadweight loss. [3] d. Suppose that the government takes over the company and becomes the (only) producer of Monopolin. What quantity of the drug will the government choose to produce? [1] e. Why does the government give out patents, even though these lead to the formation of monopolies? Give a short explanation. [2]