Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Economics
Lesson Topic: Implications of misallocation of resources in relation to restricted supply causing higher prices under a monopoly
Learning Objective/s:
  • Describe how a monopoly determines output and price using the MR = MC rule.
  • Explain why restricted supply under a monopoly leads to higher prices and deadweight loss.
  • Analyse the welfare impact of misallocation of resources caused by monopoly pricing.
  • Evaluate government interventions aimed at correcting monopoly‑induced inefficiencies.
Materials Needed:
  • Projector and screen for diagram presentation
  • Whiteboard and markers
  • Handout with monopoly vs competition comparison table
  • Graph paper and calculators for student calculations
  • Sample exam questions for practice
 Introduction:
Begin with a quick poll: “What would happen to the price of a product if only one company could sell it?” Connect this to students’ prior knowledge of competitive markets. Explain that by the end of the lesson they will be able to identify how restricted supply under a monopoly raises prices and creates deadweight loss.
Lesson Structure:
  1. Do‑now (5’) – students answer a short question on price‑taking vs price‑making on a worksheet.
  2. Mini‑lecture (10’) – present the monopoly profit‑maximising condition (MR = MC) and illustrate with a demand‑MR‑MC diagram using the projector.
  3. Guided practice (12’) – groups calculate monopoly price, quantity and deadweight loss from given data, filling in a comparison table.
  4. Class discussion (8’) – compare monopoly results with the competitive outcome, discuss welfare implications and possible policy responses.
  5. Check for understanding (5’) – exit ticket: write one sentence describing why monopoly leads to misallocation of resources.
Conclusion:
Summarise that a monopoly’s restriction of supply pushes price above marginal cost, creates deadweight loss and misallocates resources. Ask students to submit their exit tickets and reflect on the key take‑aways. For homework, assign a past‑paper question requiring explanation of monopoly effects and evaluation of one government intervention.