Interlochen Summer Arts Camp Economic Analysis
Running head: ECONOMIC ANALYSIS OF INTERLOCHEN SUMMER ARTS CAMP
1
Economic Analysis of Interlochen Summer Arts Camp
Northwestern Michigan College
ECONOMIC ANALYSIS OF INTERLOCHEN SUMMER ARTS CAMP Economic Analysis of Interlochen Summer Arts Camp
2
1. What is the market supply of the products and services your company produces: Number of firms and approximate size (as measured by number of employees). As a fine arts camp, Interlochen does not limit itself only to one or two arts as many other small summer camps do. As such, the market supply of its services varies with which segment is considered. Camps may specialize in painting, drawing, photography cinematography, music, theatre, dance, or any number of arts. Each of these …show more content…
However, such adjustments could only happen in the long-run. Since the buildings and equipment are specialized for certain programs, Interlochen would have to convert music centers into film centers, sell some of its musical equipment to purchase more camera equipment, and lay off many of its musical instructors while finding new film professionals to employ. Though it can make minor adjustment to compensate for varying demand for its different programs in the short run, this flexibility has its limits. 6. Describe the type of market the company is in. Consider the number, type and market power of competitors as well as the ease entry and exit from the market. See chapters 810 of the textbook. Interlochen as a general summer arts program is in a market of monopolistic competition. There are hundreds of other arts camps, and purchasing the necessary arts equipment and employing qualified professionals is not terribly costly, making it quite easy to enter the market. However, as a giant of the industry, Interlochen operates at a larger scale than most of its competitors, especially in its employment of top art professionals. Its prestige and reputation puts in into a kind of oligarchic segment of the industry and a higher price bracket than the run-of-mill arts camp. 7. How much market power does the company have relative to competitors and how could they gain more market power? Though it may not substantially effect smaller firms within the industry, Interlochen is a premier arts program and has great market power relative to its competitors. The camp has several factors which add to its prestigious status, like winning the National Medal of Arts, which give it much freedom in setting the bar for top arts programs around the world. However, this doesn’t prevent competition,
1
Economic Analysis of Interlochen Summer Arts Camp
Northwestern Michigan College
ECONOMIC ANALYSIS OF INTERLOCHEN SUMMER ARTS CAMP Economic Analysis of Interlochen Summer Arts Camp
2
1. What is the market supply of the products and services your company produces: Number of firms and approximate size (as measured by number of employees). As a fine arts camp, Interlochen does not limit itself only to one or two arts as many other small summer camps do. As such, the market supply of its services varies with which segment is considered. Camps may specialize in painting, drawing, photography cinematography, music, theatre, dance, or any number of arts. Each of these …show more content…
However, such adjustments could only happen in the long-run. Since the buildings and equipment are specialized for certain programs, Interlochen would have to convert music centers into film centers, sell some of its musical equipment to purchase more camera equipment, and lay off many of its musical instructors while finding new film professionals to employ. Though it can make minor adjustment to compensate for varying demand for its different programs in the short run, this flexibility has its limits. 6. Describe the type of market the company is in. Consider the number, type and market power of competitors as well as the ease entry and exit from the market. See chapters 810 of the textbook. Interlochen as a general summer arts program is in a market of monopolistic competition. There are hundreds of other arts camps, and purchasing the necessary arts equipment and employing qualified professionals is not terribly costly, making it quite easy to enter the market. However, as a giant of the industry, Interlochen operates at a larger scale than most of its competitors, especially in its employment of top art professionals. Its prestige and reputation puts in into a kind of oligarchic segment of the industry and a higher price bracket than the run-of-mill arts camp. 7. How much market power does the company have relative to competitors and how could they gain more market power? Though it may not substantially effect smaller firms within the industry, Interlochen is a premier arts program and has great market power relative to its competitors. The camp has several factors which add to its prestigious status, like winning the National Medal of Arts, which give it much freedom in setting the bar for top arts programs around the world. However, this doesn’t prevent competition,