Lesson Plan

• Describe the defining characteristics of a monopoly market.
• Explain how monopolies determine price and output using the MR = MC rule.
• Analyse the advantages and disadvantages of monopoly markets for consumers and overall welfare.
• Evaluate the role of government policy in addressing monopoly power.

• Projector or interactive whiteboard
• PowerPoint slides on monopoly characteristics
• Handout with monopoly diagram and key formulas
• Worksheet with profit‑maximisation and welfare calculations
• Calculators
• Whiteboard markers

Begin with a quick poll: Who has ever bought a product with no obvious alternatives, such as a local water supply? Review previous lessons on market structures and profit concepts. Today students will identify monopoly features, work through price‑setting and profit‑maximisation, and assess welfare impacts, aiming to demonstrate understanding through a diagram and short quiz.

1. Do‑now (5'): Rapid‑fire quiz on market types displayed on the board.
2. Mini‑lecture (10'): Present monopoly characteristics and the MR = MC rule using slides and a diagram.
3. Guided practice (12'): Solve a profit‑maximisation example on the worksheet while the teacher circulates.
4. Group activity (10'): Complete a T‑chart comparing monopoly advantages and disadvantages; discuss policy responses.
5. Whole‑class discussion (8'): Analyse a dead‑weight‑loss diagram; students label price, quantity, and welfare loss.
6. Check for understanding (5'): Exit ticket – write one advantage and one disadvantage of monopolies.

Summarise that monopolies set prices above marginal cost, creating dead‑weight loss despite possible economies of scale. Collect the exit tickets to gauge understanding. For homework, assign students to research a real‑world monopoly and write a brief paragraph on how government regulation affects its pricing.