Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Profit maximisation as the main objective of a firm
Learning Objective/s:
  • Describe the different types of cost and revenue and how they relate to profit.
  • Explain the profit‑maximising rule (MR = MC) and the short‑run shutdown condition.
  • Apply the rule to determine the profit‑maximising output in short‑run and long‑run scenarios.
  • Analyse how price relative to AVC and LRAC influences a firm’s decision to produce or exit.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with cost and revenue formulas
  • Handout containing cost tables and worksheet
  • Graph paper or digital graphing tool
  • Calculator for each student
  • Whiteboard and markers
 Introduction:
Begin with a quick poll: “What do firms aim to achieve?” Connect students’ prior knowledge of profit to the idea that maximising profit drives production decisions. Explain that by the end of the lesson they will be able to identify the exact output where profit is highest and state the criteria for staying in business.
Lesson Structure:
  1. Do‑now (5') – Short quiz on fixed vs variable costs.
  2. Mini‑lecture (10') – Review cost/revenue formulas and introduce the MR = MC rule.
  3. Guided practice (15') – Work through the perfect‑competition example, calculate MC and locate the profit‑maximising output.
  4. Group activity (10') – Using provided data, students plot MC and ATC curves and test the shutdown condition.
  5. Concept check (5') – Exit ticket: state the profit‑maximising condition and the short‑run shutdown rule.
  6. Summary (5') – Teacher recaps key take‑aways and links to long‑run equilibrium.
Conclusion:
Recap that profit is maximised where MR equals MC and that firms must cover AVC in the short run to continue operating. Ask students to write one real‑world example of a firm facing a shutdown decision as an exit ticket. Assign homework: complete a worksheet calculating profit‑maximising output for a different cost schedule.