3. Instructions: These questions test your ability to use economic theory conceptually. You may find graphing to be helpful, but you must also explain the concepts in your writing. Make sure to include a summary of all economic concepts used. Please address each question in 500 words or less, for a total of 1,500-word limit. Note: you should write your responses in a separate document and paste it into the appropriate question box

A- DeepOceanY is a first of its kind company, providing commercially available submarine tours of the deep-sea landscape and wildlife. Due to the decades of research, product design, and manufacturing set up the fixed costs to start a “commercial submarine tour” company are very high. Assuming DeepOceanY is a monopoly, how should they price their good to maximize profit? If they are unable to price discriminate, how would their marginal revenue change if they were to provide more tours? Why? Should DeepOceanY continue to participate in the “commercial submarine tour” market? Why or why not?