Part 1: Written Report Autonomous delivery robots are emerging as a solution for last-mile logistics, particularly in dense urban environments where labour shortages, high delivery costs, and growing e
Final Assessment
ECO8911 Managerial Economics
Trimester 3, 2025
ECO8911 Final Assessment T3 2025
Assessment Type: Individual
Weighting: 50%
Learning Outcomes Assessed: ULO 1, 2, and 3
Word Limit: 3,000 words (Written Report)
Time Limit: 10 minutes (Video Presentation)
Due Date: 13 February 2026 (Friday) 11:59 pm (AEST)
All submissions must be submitted with a signed Ozford Institute of Higher Education Cover Sheet via Moodle. Late submissions will attract a penalty of 5% of the assessment weighting for each calendar day late unless the lecturer grants an extension.
Assignment Task
Part 1: Written Report
Autonomous delivery robots are emerging as a solution for last-mile logistics, particularly in dense urban environments where labour shortages, high delivery costs, and growing e-commerce volumes are putting pressure on traditional courier models. These robots can transport parcels, groceries or prepared meals over short distances using pedestrian pathways, bike lanes or roadside infrastructure. Several firms overseas have piloted such services, but adoption in Australia remains limited.
An entrepreneur is considering launching a fleet of autonomous delivery robots in major Australian cities (e.g., Melbourne, Sydney, Brisbane). The venture is promising, but economic considerations, regulatory conditions and macroeconomic uncertainties must be evaluated before investment.
As a management consultant, you are required to analyse the business opportunity using both microeconomic and macroeconomic theory derived from the unit. Your report must demonstrate the ability to apply economic reasoning to real-world strategic decisions and business problems.
In particular, ensure you address the following areas using the relevant lecture content:
1. Scarcity, Opportunity Cost & Production Possibility Frontier (PPF)
Identify key resource constraints (capital, robotics hardware, skilled labour, data infrastructure, charging stations). Evaluate the opportunity costs faced by the entrepreneur (e.g., capital investment in delivery robots vs human courier employment; focus on B2B vs B2C customers). Illustrate how a simple Production Possibility Frontier (PPF) represents trade-offs between different deployment strategies or output mixes.
2. Market Demand, Supply & Price Elasticity
Analyse expected demand for autonomous delivery services. Identify demand determinants such as urban density, consumer preferences, delivery time sensitivity, e-commerce activity and logistics outsourcing. Discuss the price elasticity of demand and the cross-price elasticity of demand for substitutes such as bicycle couriers, motorbike couriers, or human gig-workers. Evaluate supply-side constraints such as robotics suppliers, battery availability, pathway access and labour for maintenance.
3. Market Structure & Competition
Determine the market structure the business will operate in (likely oligopoly or monopolistic competition) and evaluate competitive behaviour. Discuss barriers to entry (capital intensity, technology, network effects), product differentiation (delivery time, reliability, pricing, app experience), and competitive strategy.
4. Production Costs & Output Decisions
Analyse the cost structure, including fixed costs (robot purchase, charging infrastructure, software platforms) and variable costs (maintenance, electricity, replacement parts, data connectivity). Apply concepts such as marginal cost, average cost, diminishing returns, and economies of scale to evaluate output decisions and pricing strategies. Consider minimum efficient scale and break-even volume.
5. Macroeconomic Conditions & Business Cycle Impacts
Evaluate how national macroeconomic trends may affect the venture, including:
- GDP growth and consumption (impacting e-commerce demand)
- Unemployment (affecting the availability of courier labour and the relative cost of automation)
- Inflation (increasing cost of batteries, sensors and imported components)
- Business cycle stage (affecting consumer discretionary delivery demand)
6. Macroeconomic Policy – Monetary & Fiscal Channels
Discuss how:
- Monetary policy (interest rate changes) affects borrowing and capital expenditure
- Fiscal policy (subsidies, tax incentives, government spending) could influence adoption
- Policy lags and transmission mechanisms alter investment timing decisions
7. International Trade, Exchange Rates & Global Supply Chains
Analyse the impact of:
- imported robotics hardware and batteries (supply chain & lead times)
- exchange rate fluctuations affecting capital costs (AUD/USD; AUD/CNY)
- balance of payments considerations for imported equipment
- trade policy or restrictions (tariffs, export controls on chips/batteries)
- geopolitical supply shocks (e.g., semiconductor shortages)
8. Microeconomic Policy, Regulation & Externalities
Analyse applicable micro policies such as:
- City council regulations on footpath robots
- safety and liability standards for autonomy
- energy use and emissions regulations
Evaluate positive externalities (lower emissions, reduced congestion, improved delivery speed) and negative externalities (sidewalk congestion, job displacement, safety risks). Consider how policy may internalise externalities through taxes, subsidies, permits or zoning.
Conclusion
Summarise key findings and provide a judgement about the viability of the venture. Offer strategic recommendations to address microeconomic, macroeconomic, and policy risks.
References
Use Harvard referencing. Include credible data sources (ABS, OECD, industry reports, government documents, academic articles, news, etc.)
Part 2: Case Presentation
You must present the key findings of your report in a recorded video presentation.
Time limit: 8–10 minutes
Slides required: 5 - 10 (PowerPoint format)
Submission: PPTX + Video File (MP4 or similar)
Recommended structure:
- Title Slide
- Outline of Presentation
- Findings & Discussion
ECO8911 Final Assessment T3 2025
| Criteria | High Distinction (80–100%) | Distinction (70–79%) | Credit (60–69%) | Pass (50–59%) | Fail (0–49%) | Marks |
|---|---|---|---|---|---|---|
| 1. Application of Microeconomic Theory (Scarcity, Opportunity Cost, PPF, Demand, Supply, Elasticity, Market Structure) | Demonstrates deep mastery of micro concepts; applies theory with excellent reasoning; integrates diagrams/models effectively; insights highly relevant to the case. | Strong application of concepts with clear reasoning; minor gaps in diagram integration; good contextual linkage. | Adequate application; mostly descriptive; limited analytical depth; some unclear linkage. | Basic understanding shown; mostly descriptive; weak linkage to case context. | Major gaps; incorrect or missing theory; irrelevant or absent analysis. | /12 |
| 2. Production Costs & Output Decisions (Cost curves, economies of scale, marginal analysis, pricing) | Sophisticated, realistic cost analysis; critically evaluates economies of scale, cost curves & pricing; strong optimisation reasoning. | Clear cost analysis; some evidence/data; good pricing & output discussion. | Adequate discussion; limited depth; minimal numerical/diagram use. | Limited descriptive discussion; little marginal analysis; weak data. | No meaningful cost analysis; misunderstandings evident. | /8 |
| 3. Macro & Policy Analysis (GDP, inflation, unemployment, cycle, monetary & fiscal, trade/FX) | Insightful evaluation using relevant current data; excellent integration of macro variables & policy impacts; strong analytical judgement. | Strong evaluation with relevant data; good understanding of macro & policy channels. | Adequate discussion; limited integration of data; mostly descriptive. | Basic awareness; minimal data; little policy analysis. | Inaccurate or absent macroeconomic discussion. | /8 |
| 4. Externalities & Micro Policy (Regulation, safety, emissions, market failure) | Thorough & critical evaluation; integrates examples; explains internalisation mechanisms (tax/subsidy/regulation); may include behavioural insights. | Good evaluation; relevant examples; sound policy discussion. | Adequate explanation; limited depth; minimal evidence. | Basic awareness; mostly descriptive. | Incorrect or absent analysis. | /5 |
| 5. Structure, Data & Communication (Academic format, clarity, data use, Harvard referencing) | Excellent structure; coherent argument; strong integration of data & diagrams; flawless Harvard referencing. | Clear structure; strong writing; some data; mostly accurate referencing. | Adequate structure; some data; inconsistent referencing. | Limited structure; minimal data; weak or incomplete referencing. | Poor structure; no data; referencing missing/incorrect. | /5 |
| 6. Visual Aids (Slides) | Clear, simple, consistent, wellformatted visuals; summarise key ideas effectively; error-free. | Mostly clear & consistent visuals; minor formatting issues. | Summarises some key points; readable but somewhat cluttered. | Do not summarise all key points; cluttered/hard to read. | Poor visuals or lacking basic content. | /3 |
| 7. Delivery (Presentation) | Excellent delivery; confident, engaging, well-paced; no reading; smooth transitions; within time. | Very good delivery; minor lapses; confident; within time. | Good delivery; some reading/pacing issues; acceptable timing. | Reasonable delivery; heavy reading; lack of confidence; timing slightly off. | Poor delivery; unclear; unprepared; severe timing issues. |
