Lesson Plan

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Lesson Plan
Grade: 12 Date: 17/01/2026
Subject: Economics
Lesson Topic: predatory pricing
Learning Objective/s:
  • Describe the definition of predatory pricing and how it differs from competitive pricing.
  • Explain the economic rationale and the conditions required for a successful predatory attack.
  • Analyse the short‑run and long‑run welfare implications of predatory pricing.
  • Apply the profit equation to illustrate short‑run losses and potential long‑run gains.
  • Evaluate how regulators detect predatory pricing and assess its policy implications.
Materials Needed:
  • Projector and screen
  • PowerPoint slides on predatory pricing
  • Printed case‑study handout (UK supermarket example)
  • Whiteboard and markers
  • Calculator worksheets
  • Graph paper for diagram drawing
 Introduction:
Imagine a supermarket slashing the price of a popular cereal so low that small independent shops cannot match it. Students already understand price, average variable cost (AVC) and basic profit concepts, which they will build on today. By the end of the lesson you will be able to define predatory pricing, list its success conditions, and evaluate its welfare effects.
Lesson Structure:
  1. Do‑now (5') – Quick quiz on price vs. AVC to activate prior knowledge.
  2. Mini‑lecture (10') – Definition, rationale and the profit equation using slides.
  3. Group analysis (15') – Work through the UK supermarket case study; calculate short‑run loss and projected long‑run profit.
  4. Whole‑class discussion (10') – Identify the four conditions for a successful predatory attack and discuss detection indicators.
  5. Comparative activity (10') – Complete a table contrasting predatory and competitive pricing.
  6. Exit ticket (5') – Respond to an exam‑style question: “Evaluate the welfare effects of predatory pricing.”
Conclusion:
We recap the definition, conditions, and welfare implications of predatory pricing, checking understanding through the exit ticket. For homework, students will write a brief essay evaluating the long‑run consumer and economic effects of a real‑world predatory pricing case.