Student Essay

Suggested Approach
The types of products that you will be asked to investigate could be the markets for goods and services such as: * Movie tickets * A Variable interest rate home loan of AUD$400,000. * A litre of milk. * Mobile phone contract. * A loaf of bread. * Sushi rolls. * A return airline ticket from Melbourne to your home city. * A one way airline ticket from Melbourne to Sydney. * The price of a litre of unleaded petrol in Melbourne. * A lunch in the CBD for under AUD$12. * A ticket to a concert, sporting event, theatre or exhibition in Melbourne in the next three months. * Public transport tickets. * Taxi prices in Melbourne * The price of rice. * Internet connections (providers). * Credit cards in Australia * Haircuts in the Melbourne CBD * Electricity in Melbourne * Gas in Melbourne * A kilogram of apples or bananas in the Victorian or South Melbourne Market.
You need to analyse the level of competition and the degree of market power that exists in the market for these products so as to evaluate how this affects the efficiency of resource allocation. You must first determine the market structure that best fits the market. You can do this by considering the characteristics of the market. Then you must establish how competitive that market is. For example, the market may be an Oligopoly. By definition, we say that an Oligopoly is not as efficient as a more competitive market. Refer to theory to explain why. However, if you find the concentration ratio is low in this market, you can conclude that the market is still quite competitive. Or, you might investigate a monopolistically competitive market. These types of markets can be ‘very competitive’ (and thus very efficient) or only ‘slightly competitive’. You should consider the degree of product differentiation when considering how competitive the firms are.

The Process of Inquiry * Ask questions, build on your prior knowledge and make your own discoveries. * Finding out information from primary sources to answer generative questions and develop deep conceptual understandings. * Making connections between ideas, learning domains and experiences’.
(VCAA 2009 ‘Inquiry Learning’)
Assessment Rubric
The group report is worth 25 marks and the individual student reflection is worth 5 marks. The total mark for the task is 30 (see Rubrics) and this is then divided by 2 to determine the score out of 15 for the unit.
A brief description of the levels of performance is listed below: Criteria/Descriptors | Level of Performance (Marks) | Explanation and analysis related to the market structure, the importance of competition and the degree of market power and how this likely affects the efficiency of resource allocation. | Very Low Level: 1-2Low Level: 3-4Medium Level: 5-6High Level: 7-8Very High Level: 9-10 | Synthesis demonstrating economic reasoning and interpretation. | Very Low Level: 1-2Low Level: 3-4Medium Level: 5-6High Level: 7-8Very High Level: 9-10 | Inquiry process and presentation quality. | Very Low Level: 1Low Level: 2Medium Level: 3High Level: 4Very High Level: 5 | Individual Reflection | Very Low Level: 1Low Level: 2Medium Level: 3High Level: 4Very High Level: 5 |

The complete ‘Assessment Rubric for Performance Task, ‘A Small Group Report of a Market Investigation’ can be located in Moodle.

Submission Requirements - Week 13
The group will submit ONE final copy of the report in an appropriate written report format. (See below)
This must be attached to assignment cover sheets (one for each group member) that are signed and dated and each person’s Individual Reflection Report.
Part A. Group Investigation: Report Format 1. Contents page: List the main sections in your report. 2. Executive Summary: Provide the reader with an overview of the report’s essential information. It should briefly outline the subject matter of your report, including: * the background problem (what is the overall purpose of doing the investigation?) * the scope of the investigation (how widely are you intending to research?) * the method(s) of research and analysis (brief explanation of how you will research) * the important findings, arguments and important issues raised in the discussion, (explain your main findings) * brief conclusion 3. Aims: What you hope to achieve by completing this inquiry. 4. Research methodology: Describe how your research will be conducted, distinguishing between primary and secondary research. Be very descriptive. Do not simply say ‘Internet research’. 5. Summary of results of the research: This is the section where you display the information you discovered through your research. Do not analyse the meaning of the information yet, nor make conclusions. You should include graphs, tables and data `where appropriate and insert bulky documents of data into the appendix. 6. Market structure of the industry: Here is where you describe the characteristics of your chosen industry, which you should have discovered through your research. You should explain these characteristics and refer to the evidence you have to support this. Then compare these characteristics to the model market structure to which your industry closest fits with. * Analysis of competition within the industry: Analyse the main competitors, their market share and how they might differentiate their products. Refer to evidence you have of this. Discuss how a firm within the industry can react to a change made by a competitor: e.g. refer to non-price competition, the kinked demand curve, price leadership, cartels and game theory, where applicable. Evaluate the level of competition, based on findings about concentration ratio and the level of product differentiation. 7. Resource allocation in the industry: Use the analysis about the level of competition, as well as your findings about market structure, to conclude how efficient the industry is. 8. Conclusion: Summarise the main points discovered through your inquiry. 9. Appendices: Attach all relevant documents and all Individual Reflection Reports here. The above is simply a suggestion of an appropriate structure. Part B. Individual Reflection Report
In addition to the group Project and submission each student must write a 250-word reflection report describing your contribution to the Group Report. The following are some examples of things to consider when reflecting on your experience: * What role did you play? * What research did you undertake? * What preparation tasks did you undertake? Be SPECIFIC. * What did you learn? Be SPECIFIC. Has your understanding, opinions, thoughts about the industry changed? How? Why? * Explain how your learning related to how markets allocate resources has been enhanced. * Did you enjoy working on the project? Why/Why not? * Did your group encounter any problems completing this task? How did you overcome them? * If you were to do a similar task in the future, how might you approach it differently next time?

Evidence
You are required to provide evidence of your research: * Submit an accurate and reliable Bibliography * An appendix with collected information e.g. news articles, advertising materials, statistical information, transcripts of interviews etc. * Include graphs, tables, diagrams that support your report.

Starting the research – completing a draft
As a group you need to decide on the method of research and in particular, the questions that you need to ask to be able to find the required information to satisfactorily complete the project and meet the assessment criteria.
You must submit a draft copy of your research plan to your teacher before you commence the research (during Week 12). You must fill out the table below and submit to your teacher.

Describe the industry you will be investigating: What type of product is sold in this industry? What is the geographical location of this industry? | | Make list of at least five questions that you are hoping to find the answers to. These might be things like: How many firms in the industry? What is the concentration ratio of the top few firms? What type of product differentiation exists? What is the price elasticity of demand for the product/s? | | Make list of at least five types of primary and secondary research you will conduct in order to find out the answers to your questions.E.g. Interviews with sales staff; Analysis of company websites; Comparison of prices; etc. | |

Bibliography: * An appendix with collected information e.g. news articles, advertising materials, statistical information, transcripts of interviews etc. * Include graphs, tables, diagrams that support your report. Starting the research – completing a draft As a group you need to decide on the method of research and in particular, the questions that you need to ask to be able to find the required information to satisfactorily complete the project and meet the assessment criteria. You must submit a draft copy of your research plan to your teacher before you commence the research (during Week 12). You must fill out the table below and submit to your teacher. Describe the industry you will be investigating: What type of product is sold in this industry? What is the geographical location of this industry? | | Make list of at least five questions that you are hoping to find the answers to. These might be things like: How many firms in the industry? What is the concentration ratio of the top few firms? What type of product differentiation exists? What is the price elasticity of demand for the product/s? | | Make list of at least five types of primary and secondary research you will conduct in order to find out the answers to your questions.E.g. Interviews with sales staff; Analysis of company websites; Comparison of prices; etc. | |