Let quarterly demand for dog training courses be represented by the following demand curve:

P = 180-3Q

And suppose that DogPHD is the monopoly supplier of dog training courses to Australia with a marginal cost curve:

MC = 60;

a)On a clearly labeled diagram, sketch the demand, marginal revenue, and marginal cost curves and calculate and show the monopolist's profit-maximising quantity (Q^M) and the price that will be charged in the market (P^M).(4 marks)

b)Calculate the consumer surplus and producer surplus at the monopoly equilibrium and the deadweight loss of the monopoly outcome compared to the socially efficient quantity and show these on your diagram. (3 marks)

Finally, suppose that DogPHD's average fixed cost is AFC(Q)=150/Q and its average variable cost is AVC(Q)=60.

c)Calculate DogPHD's monopoly profit and explain what would happen if DogPHD was forced to charge the socially optimal price for training courses sold at Q^M. (3 marks)