Lesson Plan

• Define normal, sub‑normal, and super‑normal profit and differentiate them.
• Calculate profit using total revenue and total cost formulas.
• Explain the economic significance of each profit type for firm decisions.
• Interpret cost and revenue curves to identify profit conditions.
• Apply the concepts to real‑world examples of firms entering or exiting a market.

• Projector and screen
• Whiteboard and markers
• Printed worksheets with cost‑revenue tables
• Graph paper or digital graphing tool
• Calculator
• Sample case‑study handout

Start with a quick recall of revenue and cost concepts, then ask, “When does a firm earn enough to stay in business?” Students will see that profit types determine firm survival and market entry. The success criteria are to identify each profit type and explain its economic meaning.

1. Do‑now (5 minutes): Short problem calculating profit from given TR and TC.
2. Mini‑lecture (10 minutes): Review profit formula; introduce normal, sub‑normal, and super‑normal profit with definitions and significance.
3. Guided practice (12 minutes): Worksheet activity plotting cost and revenue curves to locate profit conditions.
4. Group case‑study analysis (15 minutes): Teams determine the profit type for a provided firm scenario and discuss market implications.
5. Check for understanding (8 minutes): Quick exit quiz (Kahoot or paper) with three classification questions.

Summarise how each profit type reflects a firm’s economic health and influences decisions to stay, exit, or attract competitors. Students complete an exit ticket stating which profit type applies to a new example. For homework, assign a short problem set requiring calculation and classification of profit for different firms.