Lesson Plan

Resources → Subject Notes → Economics → Notes
Lesson Plan
Grade: Date: 18/01/2026
Subject: Economics
Lesson Topic: profit satisficing
Learning Objective/s:
  • Describe the concept of profit satisficing and how it differs from profit maximisation.
  • Explain the main reasons firms may adopt a satisficing profit target (risk aversion, stakeholder pressures, regulatory constraints, etc.).
  • Apply the satisficing decision rule to determine output and pricing in a simple market example.
  • Evaluate the welfare and policy implications of profit satisficing compared with profit maximisation.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck summarising key concepts
  • Handout with the profit‑satisficing example calculation
  • Graph paper or digital graphing tool
  • Calculator
  • Whiteboard markers
 Introduction:
Begin with a quick poll: “Do all firms always aim for the highest profit?” Connect to prior learning on profit maximisation and introduce profit satisficing as an alternative objective. Outline the success criteria: students will define the concept, compare it with maximisation, and solve a simple satisficing output problem.
Lesson Structure:
  1. Do‑now (5'): Students answer the poll on sticky notes; teacher reviews responses.
  2. Mini‑lecture (10'): Define profit satisficing, its key features and reasons for adoption.
  3. Guided example (15'): Work through the linear demand‑cost example to calculate the satisficing output.
  4. Group activity (10'): Teams analyse a case (e.g., a utility firm) and decide on a profit target and related policy choices.
  5. Comparison discussion (10'): Contrast profit maximisation vs. satisficing using the provided table; discuss welfare effects.
  6. Check for understanding (5'): Quick exit‑ticket quiz with two short questions.
Conclusion:
Recap the definition and decision rule of profit satisficing and its impact on pricing and output. Students complete an exit ticket summarising one advantage and one limitation of satisficing. For homework, read a short article on stakeholder pressure and write a brief paragraph linking it to profit‑target decisions.