Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Short-run and long-run production
Learning Objective/s:
  • Describe the distinction between short‑run and long‑run production and the associated cost concepts.
  • Explain how marginal analysis determines profit‑maximising output in the short run and scale choice in the long run.
  • Apply cost formulas to calculate total, average and marginal costs for given output levels.
  • Analyse returns to scale and economies of scale using LRAC and LRMC.
  • Evaluate firm decisions on entry, exit or shutdown based on price relative to cost curves.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck covering short‑run and long‑run concepts
  • Handout with cost tables and example calculations
  • Calculator or spreadsheet software for numeric work
  • Graph paper or digital graphing tool for drawing cost curves
 Introduction:
Begin with a quick poll: “When a firm expands, which costs do you think can change?” Connect to prior learning on basic cost definitions. State that by the end of the lesson students will be able to identify short‑run vs long‑run cost structures and apply profit‑maximising rules.
Lesson Structure:
  1. Do‑now (5’) – worksheet identifying fixed vs variable inputs from real‑world examples.
  2. Mini‑lecture (15’) – short‑run concepts (production function, diminishing returns, cost formulas) with slides.
  3. Guided practice (10’) – work through the short‑run example, calculate TC, MC, profit.
  4. Transition (5’) – discuss how analysis changes when all inputs become variable.
  5. Mini‑lecture (10’) – long‑run concepts (returns to scale, LRAC, LRMC) and decision rule.
  6. Group activity (10’) – plot LRAC/LRMC for the long‑run example, determine optimal output, share findings.
  7. Check for understanding (5’) – quick quiz via Kahoot or exit‑ticket question.
Conclusion:
Summarise that short‑run decisions rely on MR = MC with fixed inputs, while long‑run decisions focus on minimizing LRAC and matching price to LRMC. Ask students to write one key difference on a sticky note as an exit ticket. For homework, assign problems requiring calculation of cost curves and identification of returns to scale.