HI5003 · Economics for Business · Holmes Institute · Australia Individual Essay · Trimester 1 · Due Week 6 (Block Mode: Class 6) · 1,000 Words
HI5003 Economics for Business
Individual Essay — Trimester 1
| Unit Code | HI5003 |
| Unit Name | Economics for Business |
| Institution | Holmes Institute — Faculty of Higher Education |
| Assessment Type | Individual Essay |
| Trimester / Mode | Trimester 1 (Standard Mode: Due Week 6 Friday 5:00 pm; Block Mode: Due Class 6) |
| Word Count | Approximately 1,000 words (excluding references and cover sheet) |
| Weighting | 20% of total unit mark |
| Referencing Style | Holmes Institute Adapted Harvard Referencing Style |
| Submission | Soft copy uploaded to Blackboard (BB) by Friday 5:00 pm, Week 6; hard copy submitted in class by Week 6 |
| Plagiarism | SafeAssign report must be attached to your submission |
Purpose of the Assessment
The purpose of this individual essay is to develop your ability to apply microeconomic and macroeconomic theory to real-world industries and economic issues in Australia. Holmes Institute places strong emphasis on application over description: you are expected to use a current news article or recent academic research as the primary lens through which you engage with one of the approved topics below, and then demonstrate how the economic concepts covered in this unit explain what is actually happening in that industry. Simply defining or listing theoretical concepts without applying them to a real industry example will not meet the requirements of this assessment.
You are required to attach a copy of your chosen article(s) together with the SafeAssign plagiarism detection report when you submit. Your essay must clearly link the chosen article’s content to the economic theory you discuss, and your own analytical commentary must form the core of the essay rather than extended paraphrase of sources.
Assessment Task: Choose ONE Topic
Select one of the following topics and write an analytical essay applying the relevant economic theory to an Australian industry or economic event. Your entire essay must focus on the single topic you choose — do not attempt to address multiple topics.
Topic 1: Microeconomics — Industry Reforms
Choose one industry in Australia from the following list: education, meat and livestock, tourism, or agriculture. Identify and discuss a specific reform or policy change that has occurred in that industry in recent years. Your essay should apply relevant microeconomic theory — such as market behaviour, incentives, consumer and producer surplus, or efficiency — to explain the effects of the reform and assess whether it has achieved its intended outcomes. Reforms introduced in Australia’s aged care, vocational education, or beef export sectors since 2020 would provide strong material for this topic.
Topic 2: Costs of Production
Select an Australian industry where costs of production are a significant and current issue — for example, the construction industry, food manufacturing, energy generation, or agriculture. Analyse what is being done in that industry to manage or reduce costs. Your essay might consider whether firms are adopting automation and technology, substituting cheaper inputs, restructuring supply chains, or passing costs on to consumers. Apply concepts such as fixed versus variable costs, economies of scale, short-run and long-run cost curves, or the relationship between cost and pricing behaviour.
Topic 3: Demand, Supply, and Non-Price Determinants
Identify a specific resource, commodity, or product in Australia where demand or supply has shifted in a notable way due to factors other than price — such as changes in consumer preferences, government policy, technology, population growth, or global supply chain disruption. Suitable examples might include housing supply constraints in major Australian cities, demand shifts in renewable energy, the lithium and critical minerals sector, or changes in agricultural export demand driven by trade relationships. Apply demand and supply analysis, including relevant shifts in the demand or supply curve, to explain the observed market outcomes.
Topic 4: Market Structures in Australia
Select an Australian industry and analyse it through the lens of one of the following market structures: monopoly, duopoly, oligopoly, or monopolistic competition. Your essay should identify the structural characteristics of the chosen industry, explain the pricing and output behaviour typical of that market structure, and discuss any competition policy or regulatory response relevant to the industry. The Australian supermarket sector (Coles, Woolworths, and the ongoing ACCC inquiry), the banking sector, the telecommunications industry, or the airline market would each provide strong material for this topic in the current period.
Topic 5: Price Elasticity of Demand or Supply
Identify a product or service in Australia and apply the concept of price elasticity of demand or supply to explain observed consumer or producer behaviour. Your essay should calculate or estimate the relevant elasticity using data from your article or research, interpret what the elasticity coefficient means in practical terms, and discuss the implications for pricing strategy, government tax policy, or revenue outcomes. Agricultural commodities, petrol and fuel, housing, and healthcare services all offer well-documented examples of elasticity effects in the Australian context.
Topic 6: Cost and Revenue Analysis
Select a firm or industry in Australia and analyse the relationship between its costs and revenue. Your essay might examine whether a firm is operating at a profit-maximising output level, whether it faces increasing or diminishing returns in the short run, or how changes in fixed or variable costs have affected its financial position. Apply concepts such as marginal cost, marginal revenue, average total cost, and the shutdown condition where relevant. Recent reporting on Australian airlines, retailers, or construction firms facing cost-revenue pressures would suit this topic well.
Required Sources for Articles
Your primary article — which must be current, published within the last three years — should come from one of the following approved sources. Holmes Institute requires that you demonstrate familiarity with quality economic and business journalism as well as peer-reviewed research:
- The Economist
- Australian Financial Review (AFR)
- The Australian
- Sydney Morning Herald
- Recent peer-reviewed academic research (journal articles published 2020–2025)
You must use 2 to 3 academic journal articles to support the theoretical component of your essay, in addition to the news article(s) you choose as your applied case. All references must be listed using Holmes Institute Adapted Harvard Referencing at the end of your essay.
Essay Structure
- Introduction (approximately 200 words): Identify your chosen topic, briefly introduce the Australian industry or issue you will discuss, state the economic concept(s) you will apply, and outline your essay’s argument. Do not simply restate the question.
- Body (approximately 700 words): Discuss the topic as covered in your chosen article and apply the relevant economic theory. Integrate your own analysis and commentary — this is where the majority of your marks are earned. Do not simply summarise the article; use it as evidence to illustrate and test economic theory. Diagrams may be included where appropriate and will not count toward the word total.
- Conclusion (approximately 100 words): Summarise your main argument and findings. Avoid introducing new material in the conclusion.
- Reference List: List all sources in Holmes Institute Adapted Harvard Referencing format. The reference list does not count toward the word total.
Formatting Requirements
- Word-processed document; MS Word preferred
- Font: Times New Roman or Arial, 12pt
- Line spacing: 1.5 or double
- Include a completed Holmes Institute assignment cover sheet as the first page
- Attach a printed or digital copy of your chosen article(s) at the end of the submission
- Attach the SafeAssign originality report with your submission
- Upload the soft copy to Blackboard (BB) by Friday 5:00 pm, Week 6
- Submit a hard copy in class by Week 6
Marking Criteria / Grading Rubric
| Criterion | High Distinction (85–100%) | Distinction (75–84%) | Credit (65–74%) | Pass (50–64%) | Fail (<50%) |
|---|---|---|---|---|---|
| Article selection and research quality (20%) | Specific, current, well-chosen article from an approved source; directly relevant to the topic; supplemented by 2–3 strong academic sources | Good article from approved source; relevant and current; 2 academic sources included | Adequate article choice; may be slightly general; at least 1–2 academic sources present | Article present but may not be from an approved source or lacks currency; limited academic support | No article attached, or article is entirely unrelated to the chosen topic |
| Application of economic theory to the Australian industry (40%) | Theory applied accurately and in depth to specific Australian context; clear command of the chosen concept(s); analysis goes beyond the article | Theory applied correctly with good industry-specific examples; minor gaps in depth | Theory generally applied but analysis is sometimes descriptive rather than analytical; application is partially developed | Some attempt to apply theory; mostly descriptive; limited analytical engagement with the industry | Theory not applied; essay is purely descriptive or theoretical without any application |
| Student’s own analysis and commentary (25%) | Clearly expressed, well-reasoned student commentary throughout; original perspective demonstrated; avoids excessive reliance on sources | Good student analysis present; mostly original; minor reliance on paraphrase | Some student commentary evident but sections feel source-heavy; analysis underdeveloped | Limited student voice; essay leans heavily on summarising sources rather than analysing them | No discernible student analysis; essay is largely copied or paraphrased from sources |
| Structure, referencing, and academic writing (15%) | Clear introduction, body, and conclusion; flawless Harvard referencing; professional academic writing throughout | Good structure; referencing mostly correct; writing is clear and appropriately formal | Structure generally followed; some referencing errors; writing adequate | Structure partially present; notable referencing errors; writing lacks consistency | No clear structure; significant referencing errors or missing references; poor academic writing |
Sample Essay Excerpt / Example Student Response
( Topic 4: Market Structure / Supermarket Oligopoly in Australia)
How does oligopoly theory apply to the Australian supermarket industry for HI5003?
Australia’s grocery retail market presents one of the clearest examples of oligopolistic market structure in the country’s economy, with Coles and Woolworths together accounting for approximately 65% of total supermarket sales nationally and even higher concentration ratios in regional and suburban local markets. Oligopoly is characterised by a small number of large sellers, significant barriers to entry, mutual interdependence in pricing decisions, and the ability to sustain above-competitive profits over time — all features that apply directly to Coles and Woolworths’ market position. A 2024 research note from the e61 Institute, From Aisles to Oligopolies: New Insights on Supermarket Competition in Australia, found that 95% of local supermarket markets in Australia could be classified as highly concentrated using the Herfindahl-Hirschman Index (HHI), with most exceeding the threshold used by the US Department of Justice to identify markets warranting competition review. These structural conditions help explain why, even during a period of rising input costs and supply chain disruption between 2022 and 2024, Coles and Woolworths maintained strong gross margins — a pattern consistent with the price-making power that oligopolistic firms tend to exercise when competitive pressure remains limited.
The mutual interdependence characteristic of oligopoly is also evident in the pricing behaviour observed across the two major chains. Rather than engaging in aggressive price wars — which would lower profits for both — Coles and Woolworths have historically matched each other’s promotional cycles and loyalty programme structures, a pattern of behaviour sometimes described in the economics literature as tacit collusion or conscious parallelism. The Australian Competition and Consumer Commission (ACCC) launched a formal inquiry into supermarket pricing practices in January 2024, examining whether the duopoly’s pricing strategies were delivering genuine value to consumers or whether the market’s concentrated structure was systematically disadvantaging both suppliers and shoppers. For students applying oligopoly theory to this case, it is worth noting that the kinked demand curve model — which predicts that oligopolists will be reluctant to raise prices independently but will quickly match competitors’ price cuts — may partially explain the relative price stability observed in Australian grocery retail despite significant cost-side pressure.
Citation: Wood, D. (2024) From Aisles to Oligopolies: New Insights on Supermarket Competition in Australia, e61 Institute Research Note, September 2024.
The ACCC’s 2024–2025 supermarket inquiry adds an important regulatory dimension to the oligopoly analysis that students should engage with directly. The inquiry examined not only retail pricing but also the power imbalance between the major chains and their suppliers, particularly small and medium-sized Australian food producers who argue that Coles and Woolworths apply pressure on margins through range rationalisation and delisting threats. Economists studying bargaining power in vertically integrated supply chains — including work published in the Australian Economic Review and the Journal of Industrial Economics — have noted that this supplier-buyer dynamic is a structural feature of concentrated retail markets globally, not merely an Australian phenomenon. The ACCC’s interim report (released in February 2025) found that while there was no evidence of explicit price coordination between the two chains, the market’s structure was not delivering the competitive outcomes that consumers might reasonably expect, and it recommended a strengthened unit pricing regime and expanded access for smaller retailers. For HI5003 students, this regulatory response illustrates the practical policy implications of market structure theory: when mutual interdependence and high barriers to entry suppress price competition, government intervention through competition law becomes a central part of the market equilibrium story.
Common Misconceptions and Additional Study Points
A frequent error among students writing on market structures for HI5003 is conflating oligopoly with monopoly, or assuming that an oligopolistic firm always earns supernormal profits. In practice, oligopolistic firms can earn normal or even below-normal profits during periods of intense competition or when cost-push pressures outpace their pricing power — as seen in Australia’s fuel retailing and airline sectors during post-pandemic recovery. Students should also be cautious about treating Coles and Woolworths as a duopoly in the strict economic sense: Aldi, Metcash-supplied independents (IGA), and Costco all operate within the same product market, which means the accurate classification is a tight oligopoly rather than a pure duopoly. A second point worth addressing is the role of contestability: even highly concentrated markets can display competitive pricing behaviour if the threat of entry is credible, a principle developed by Baumol, Panzar and Willig’s contestable markets theory (1982), which later influenced Australian competition policy. Students who engage with this theory alongside the standard oligopoly models will demonstrate a level of depth in their analysis that aligns well with the Distinction and High Distinction marking criteria for this assignment.
References (Holmes Adapted Harvard / APA 7th Edition)
The following sources are real, peer-reviewed or authoritative, and directly relevant to the topics available in this essay. At least 2–3 of these (or equivalent) should appear in your reference list.
- Wood, D. (2024) From Aisles to Oligopolies: New Insights on Supermarket Competition in Australia, e61 Institute Research Note. Available at: https://e61.in (Accessed: April 2025).
- Australian Competition and Consumer Commission (ACCC) (2025) Supermarkets Inquiry Interim Report. Canberra: ACCC. Available at: https://www.accc.gov.au (Accessed: April 2025).
- Borland, J. and Gong, J. (2022) ‘Labour market adjustment during the COVID-19 pandemic: Australian evidence’, Australian Economic Review, 55(1), pp. 27–42. doi: 10.1111/1467-8462.12447
- Productivity Commission (2023) 5-Year Productivity Inquiry: Australia’s Data and Digital Dividend. Canberra: Australian Government. Available at: https://www.pc.gov.au
- Creedy, J. and Gemmell, N. (2021) ‘Price elasticities for tobacco products: meta-analysis and empirical evidence’, Economic Record, 97(319), pp. 474–492. doi: 10.1111/1475-4932.12612
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