Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Calculation of TC, ATC, FC, AFC, VC and AVC
Learning Objective/s:
  • Describe the components of total, fixed, variable, and average costs.
  • Calculate TC, FC, VC, AFC, AVC, and ATC for given output levels.
  • Analyse how cost curves behave as output changes and explain the economic implications.
  • Apply cost formulas to determine shutdown and profit‑maximising decisions.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheets with cost tables
  • Calculator or spreadsheet software
  • Graph paper or digital plotting tool
  • Markers and whiteboard
 Introduction:
Begin with a quick real‑world example of a bakery’s weekly expenses to capture interest. Review prior knowledge of fixed vs variable costs and the formulas for total and average costs. Explain that by the end of the lesson students will be able to compute each cost measure and interpret the resulting cost curves.
Lesson Structure:
  1. Do‑now (5') – Short quiz on fixed vs variable costs.
  2. Mini‑lecture (10') – Introduce formulas for TC, AFC, AVC, ATC with brief examples.
  3. Guided practice (15') – In pairs, calculate TC, AFC, AVC, ATC for the bakery data using calculators.
  4. Class discussion (10') – Interpret the cost curves; explain why AFC falls and why AVC is U‑shaped.
  5. Quick check (5') – Exit ticket: one cost‑calculation problem.
  6. Extension (optional, 5') – Link cost calculations to profit, shutdown and long‑run decisions.
Conclusion:
Summarise how each cost measure is derived and what its shape reveals about firm efficiency. Collect exit tickets to gauge understanding, and assign homework to complete a similar cost table for a different firm. Remind students to memorise the key formulas for the upcoming IGCSE exam.