Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Definitions of total revenue (TR) and average revenue (AR)
Learning Objective/s:
  • Define total revenue (TR) and calculate it using price and quantity.
  • Define average revenue (AR) and explain its relationship to price in perfect competition.
  • Compare TR and AR across different market structures.
  • Apply TR and AR formulas to solve numerical problems.
  • Interpret TR and AR curves on a graph.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with TR/AR practice problems
  • Graph paper or digital graphing tool
  • Calculators
  • Textbook chapter on revenue concepts
  • Whiteboard and markers
 Introduction:
Begin with a quick question: “If a firm sells more units, how does its money intake change?” Connect this to students’ prior knowledge of profit = TR – TC. Explain that today they will learn precise definitions of total and average revenue and how to use them to assess firm performance. Success will be measured by correctly calculating and interpreting TR and AR.
Lesson Structure:
  1. Do‑now (5'): Students answer a short profit‑calculation question from the previous lesson.
  2. Mini‑lecture (10'): Introduce definitions of TR and AR, present formulas TR = P × Q and AR = TR⁄Q = P, and discuss the economic meaning.
  3. Guided example (10'): Work through the example of 200 units at £5, calculating TR = £1,000 and AR = £5 together.
  4. Graphing activity (10'): Using graph paper or a digital tool, students plot TR and AR curves, noting the horizontal AR line in perfect competition.
  5. Pair practice (10'): Learners complete worksheet problems with varying prices and quantities, calculating TR and AR.
  6. Check for understanding (5'): Exit ticket – write one sentence explaining why AR equals price in a perfectly competitive market.
Conclusion:
Recap the key formulas and the relationship between TR, AR, and market price. Collect exit tickets to gauge understanding, and assign homework: complete additional TR and AR calculations from the textbook’s practice set. This reinforces today’s concepts and prepares students for profit analysis in the next lesson.