Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: monopolistic competition
Learning Objective/s:
  • Describe the key characteristics of monopolistic competition.
  • Explain short‑run profit maximisation and long‑run zero‑profit equilibrium.
  • Compare product and allocative efficiency with perfect competition and monopoly.
  • Analyse policy measures that can improve outcomes in monopolistically competitive markets.
Materials Needed:
  • Projector and screen for slides/diagrams
  • Whiteboard and markers
  • Handout summarising characteristics and equations
  • Calculator or spreadsheet for profit calculations
  • Sample product advertisements for differentiation discussion
 Introduction:
Begin with a quick poll: “Which brands do you choose and why?” to highlight product differentiation. Review the concepts of perfect competition and monopoly from the previous lesson. Today’s success criteria: identify monopolistic competition features, solve short‑run equilibrium calculations, and evaluate its efficiency.
Lesson Structure:
  1. Do‑now (5’) – students list brands they buy and note differences.
  2. Mini‑lecture (15’) – present definition, characteristics, and demand curve using slides.
  3. Guided practice (15’) – pairs work through short‑run equilibrium equations; teacher circulates.
  4. Comparative analysis (10’) – complete a table contrasting perfect competition, monopolistic competition, and monopoly.
  5. Whole‑class discussion (10’) – discuss efficiency and policy implications; exit‑ticket question.
Conclusion:
Summarise that monopolistic competition features many differentiated firms, short‑run profits possible but long‑run profits erode, leading to inefficiencies. Ask students to write one key takeaway on an exit ticket. For homework, assign a short case study to identify a real‑world monopolistically competitive market and evaluate its pricing strategy.