Lesson Plan

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Lesson Plan
Grade: Date: 05/03/2026
Subject: Economics
Lesson Topic: Drawing and interpretation of diagrams that show how changes in output affect costs of production
Learning Objective/s:
  • Describe the different types of costs (fixed, variable, total, average, marginal) and their formulas.
  • Draw and accurately label the seven cost curves (FC, VC, TC, AFC, AVC, ATC, MC) on a single diagram.
  • Explain how a change in output moves the firm along the MC curve and influences AVC, ATC and profit.
  • Apply the profit‑maximising rule (MR = MC) and the short‑run shutdown rule (P < AVC) to real data.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with cost data tables
  • Graph paper and coloured markers
  • Scientific calculators
  • Handout summarising cost‑curve shapes and formulas
  • Sample exam question (short answer)
 Introduction:
Begin with a quick recall: ask pupils to give examples of fixed and variable costs in a business. Show a short video of a factory floor to hook interest. State that by the end of the lesson they will be able to produce a complete cost diagram and interpret how output changes affect costs and profit.
Lesson Structure:
  1. Do‑now (5'): short quiz on cost definitions (fixed, variable, marginal).
  2. Mini‑lecture (10'): introduce the seven cost curves, their shapes and key formulas.
  3. Guided modelling (15'): teacher draws axes, plots FC, VC and derives TC, AFC, AVC, ATC, MC while explaining each step.
  4. Paired activity (15'): students complete the full diagram on graph paper, label all curves and mark MC intersections.
  5. Interpretation practice (10'): using the example data table, calculate ATC at Q=20, MC between Q=20‑30 and discuss the profit‑maximising output.
  6. Check for understanding (5'): exit‑ticket – “State the condition for a firm to shut down in the short run.”
Conclusion:
Recap the steps for drawing the cost diagram and the two key decision rules (MR = MC and P < AVC). Collect exit tickets and remind pupils to complete the homework diagram for a new data set and answer two short questions on profit maximisation. This reinforces today’s learning and prepares them for the upcoming exam.