Lesson Plan

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Lesson Plan
Grade: Date: 03/03/2026
Subject: Economics
Lesson Topic: traditional profit-maximising objective of firms
Learning Objective/s:
  • Describe the profit‑maximising condition MR = MC and its derivation.
  • Explain short‑run and long‑run profit decisions for a competitive firm.
  • Compare profit maximisation with alternative objectives such as revenue, market‑share and CSR.
  • Analyse how market structure and cost conditions influence the profit‑maximising output.
  • Apply the MR‑MC framework to a simple diagram and identify the profit‑maximising point.
Materials Needed:
  • Projector and screen for slides/diagrams.
  • Whiteboard and markers.
  • Handout summarising MR‑MC diagram and key formulas.
  • Calculator or spreadsheet for quick calculations.
  • Sample data set for short‑run decision exercise.
 Introduction:
Begin with a quick real‑world example of a fast‑food chain adjusting output after a price change to hook students. Recall that firms in perfect competition are price‑takers and that profit is total revenue minus total cost. Today’s success criteria: students will be able to state and apply the MR = MC rule, distinguish short‑run from long‑run decisions, and critique the limits of the pure profit‑maximising model.
Lesson Structure:
  1. Do‑now (5') – students calculate profit from a short TR/TC table.
  2. Mini‑lecture (10') – present definition, assumptions, and MR = MC condition with slides.
  3. Guided practice (12') – plot MR and MC curves to locate the profit‑maximising output.
  4. Short‑run vs long‑run discussion (8') – groups compare shutdown rule and entry/exit condition, then share findings.
  5. Comparative objectives activity (10') – analyse a table of alternative firm objectives and identify their decision rules.
  6. Formative check (5') – exit ticket: write the profit‑maximising rule and one limitation of the model.
Conclusion:
Summarise that firms maximise profit by producing where MR equals MC, but real firms may balance other goals. The exit ticket confirms students can state the rule and recognise a limitation. For homework, assign a brief task to calculate the short‑run shutdown point using a provided cost schedule.