Lesson Plan

• Describe the defining assumptions of perfect competition.
• Explain how firms determine output and price in the short run and long run.
• Analyse the efficiency outcomes and welfare implications of perfect competition.
• Compare perfect competition with other market structures using key characteristics.
• Apply the profit‑maximisation rule (P = MC) to interpret short‑run equilibrium diagrams.

• Projector and screen for slides/diagrams
• Whiteboard and markers
• Handout summarising assumptions, characteristics, and diagrams
• Calculator worksheets for MC, AC calculations
• Printed data set of a price‑taking firm

Begin with a quick question about how prices are set in different markets to hook interest. Review students’ prior knowledge of market structures and clarify that today’s success criteria are to identify perfect competition’s assumptions and to explain its efficiency outcomes.

1. Do‑now (5') – short quiz on market structures to activate prior knowledge.
2. Mini‑lecture (10') – present definition, key assumptions, and price‑taker concept with a diagram.
3. Guided analysis (12') – students work through a short‑run equilibrium table, calculating profit using P, MC, and AC.
4. Group activity (10') – compare perfect competition with monopoly using the provided comparison table; create a Venn diagram.
5. Whole‑class discussion (8') – discuss long‑run entry/exit, allocative and productive efficiency; check understanding with concept questions.
6. Exit ticket (5') – each student writes one characteristic and one welfare implication of perfect competition.

To summarise, perfect competition leads to both allocative and productive efficiency through the P = MC condition and free entry and exit. For homework, complete the worksheet that requires drawing short‑run and long‑run equilibrium diagrams and calculating profit or loss for given data.