Go to the Six Flags website and consider how admission to the Magic Mountain Amusement Park is priced including the season passes and combo ticket to Six Flags and Hurricane Harbor.
A. Is Six flags a monopoly? Explain. What are the conditions under which a monopolist can use sophisticated pricing schemes? Do these conditions exist at Magic Mountain? Explain.
B. List the pricing scheme(s) used by Six Flags for the Magic Mountain and Hurricane Harbor amusement parks.
C. Give a brief description of each type of pricing scheme(s) utilized and explain how it works and why it is superior to acting as a simple monopolist.
D.
Choose
two of those schemes and show graphically and explain the economic logic
behind each scheme.