Lesson Plan

• Describe the defining characteristics of a monopoly and how it differs from perfect competition.
• Explain how a monopoly determines output and price using marginal revenue and marginal cost.
• Analyse the welfare effects of monopoly power, including dead‑weight loss.
• Evaluate the role of price discrimination and regulatory interventions in mitigating monopoly inefficiencies.

• Projector or interactive whiteboard
• Slide deck with monopoly diagrams
• Handout summarising key formulas and characteristics
• Graph paper and calculators for student calculations
• Sample case study of a natural monopoly (e.g., electricity provider)

Begin with a quick poll: “What product do you think is supplied by only one company?” Use responses to activate prior knowledge of market structures. Explain that today’s lesson will explore the monopoly model, its pricing behaviour, and its impact on welfare. Students will know they are expected to draw and label a monopoly diagram and discuss regulatory options.

1. Do‑now (5'): Students list examples of monopolies they encounter and share briefly. (Engage prior knowledge)
2. Mini‑lecture (15'): Present key characteristics, sources of monopoly power, and profit‑maximisation condition using slides and the demand‑MR‑MC diagram. (Direct instruction)
3. Guided practice (10'): Work through a numerical example calculating MR, MC, and the profit‑maximising output; students complete worksheet. (Application)
4. Group activity (12'): In small groups, analyse a case of a natural monopoly and propose a regulatory response; record on poster. (Collaboration)
5. Price discrimination discussion (8'): Explain the three degrees and have students match real‑world examples to each degree. (Conceptual understanding)
6. Check for understanding (5'): Quick quiz via Kahoot or exit ticket with two questions on P > MC and dead‑weight loss. (Formative assessment)

Summarise that monopolies set price above marginal cost, creating dead‑weight loss, and that regulation aims to curb these inefficiencies. Ask students to write one key takeaway on a sticky note as an exit ticket. For homework, assign a short essay comparing monopoly regulation in utilities versus telecoms.