BUSS1040 Essay Assignment
This assignment requires you to explore a ‘real-world’ application of economics. Your
answer must be no longer than 700 words (max 770 words) in length and many essays
that receive a perfect score will be under this word limit. Assignments must be submitted
electronically via Turnitin on Canvas by Monday 8th May 11.59 pm. Should submission
problems occur, students should contact huy.vu@sydney.edu.au as soon as possible.
Questions:
a. Consider the supermarket industry in Australia. Briefly describe and define the market
structure. Provide arguments and suggestive evidence in support of your claims. Your
discussion could address issues such as market concentration, product characteristics,
barriers to entry, whether firms make profits, and entry/exit to this market. (10 marks)
b. Recent research by investment bank UBS has found food price rises averaged 9.2
percent in the last quarter of 2022. Use a diagram and explain three different reasons
why food prices have increased significantly. How important is the price elasticity of
demand in determining the new equilibrium price? (10 marks)
c. In Australia, the competition between Woolworths and Coles has been ongoing for
decades. Amid the cost-of-living chaos due to inflation, both companies have decided to
lower the prices of more items to help customers (e.g., the Dropped and Locked
program). Using game theory, explain how the Dropped and Locked program may hurt
both companies’ profits in the short run. (10 marks)
d. Instead of Dropped and Locked program, Woolworths management announced that
they will commit to match any current price that a competitor charges for a product of
identical quality. Assume there are only two players in the market: Coles and
Woolworths. Using game theory, explain how Woolworths’ strategy may help both firms
to avoid the Prisoner Dilemma outcome. (5 marks)
Assignment Guidelines
1. The written assignment is 700 words long (+10% so the MAXIMUM is 770 words), not
including a reference list and diagrams. Headings and sub-headings (e.g. based on the
questions posed) are allowed to structure the assignment. Students need to indicate the
word count on the assignment itself.
2. When responding to these questions you should use relevant models and concepts
covered in this course. State any assumptions you make. It is critical that you set up a
clear and logical discussion.
3. Reference list [*This section is NOT included in the word count*]
This section should list the references used in the paper. Use APA reference and citation
style (7th edition). For more information about the APA reference and citation style,
please refer to the APA 7th referencing guide, which is available on the Canvas site and
on the USyd Library’s APA style site: https://libguides.library.usyd.edu.au/citation/apa7
Below is a simple example of an in-text reference and a reference list entry:
In-text reference:
[…] In contrast to most other introductory microeconomics textbooks, Nguyen
and Wait (2016) discuss all economic concepts in a very concise manner. […]
Reference list:
Nguyen, B. & Wait, A. (2016). Essentials of Microeconomics. London, UK: Taylor &
Francis.
4. You need to use appropriate language and submit a professional piece of work. Avoid
slang or colloquial terms; check spelling and grammar.
Frequently asked questions and answers
1. How is my essay marked?
The essay is worth a total of 35 marks.
35 marks are assigned based on the responses to essay questions.
Up to 3 marks are deducted for readability and general writing proficiency.
• -3 marks if very difficult to read. Poor sentence structure, poor spelling/grammar, etc.
• -1.5 marks if readable but several spelling/grammatical errors.
• 0 mark if reads well with few spelling/grammatical errors.
2. How do I include the drawings in my answers?
We do not care as long as the drawings are clearly labelled and easy to read. You are
welcome to take pictures of your hand-drawn diagrams and insert them into the essay. You
can also draw them in PowerPoint or Word.
3. Should I write an essay like in an English class essay or provide a point by point response?
Please provide a point-by-point response e.g.
1a) BUSS1040 was the best class this term because I like having lectures on Tuesdays.
1b) I think the government should impose a price floor on the university fees because the
university is too cheap.
…
The answer to each question must be written under the correct point. You will lose points if
you provide a part of the answer to 1b) under 1a) or elsewhere.
4. Can I use Ed to discuss the essay?
Answers to essay questions cannot be posted on Ed. If you have any technical or
clarification questions that do not give away the answer, please post them on Ed with a
meaningful title. You cannot discuss your answers with tutors.
5. Can I discuss my essay answers with my tutor?
No ☺. This would be unfair to others. Tutors are instructed not to discuss essay answers
with students.
6. Can I apply for a simple extension?
We will not approve any email requesting a simple extension. If you are unable to submit
the assignment by the due date, please apply for special consideration. For further
information about Special Considerations, see the link below:
https://www.sydney.edu.au/students/simple-extensions.html
Remember: we are assessing how well you can apply what you have learned in this class
to the question. The correct answers will be based on what you learned in this class so
far.