Lesson Plan

• Define the marginal revenue product (MRP) of labour and identify its components (MP and MR/P).
• Calculate MRP for a series of workers using given output and price data.
• Analyse how MRP determines a firm’s demand for labour and the equilibrium wage point.
• Evaluate the effect of government policies (minimum wage, subsidies, training) on the MRP curve and employment levels.

• Projector and screen for slides/diagrams
• Whiteboard and markers
• Printed worksheet with the labour‑output table and calculation tasks
• Calculators (one per student)
• Graph paper or digital graphing tool for plotting the MRP curve
• Laptop with presentation software

Begin with a quick poll: “If you could hire one more worker, what factor would you look at first?” Connect this to students’ prior knowledge of marginal product and marginal revenue. Explain that today they will learn how these concepts combine into the marginal revenue product, which decides how many workers a firm actually hires. Success will be measured by their ability to compute MRP and explain its role in labour‑market decisions.

1. Do‑now (5'): Quick recall questions on marginal product and marginal revenue from the previous lesson.
2. Mini‑lecture (10'): Define MRP, present the formula MRP = MP × MR (or MP × P in perfect competition), and illustrate with the provided table.
3. Guided calculation (12'): Students work through the numerical example, filling in MRP values for each worker on the worksheet.
4. Graphing activity (10'): Using graph paper or a digital tool, students plot the MRP curve and a horizontal wage line to locate the equilibrium hiring point.
5. Policy discussion (8'): Small groups analyse how minimum wages, subsidies, and training programmes shift the MRP curve; groups share conclusions.
6. Check for understanding (5'): Exit ticket – write one sentence explaining the condition under which a firm will hire an additional worker.

Recap the definition of MRP, the calculation steps, and how the curve guides hiring decisions. Collect the exit tickets to gauge understanding, and remind students that the homework is to complete a short problem set calculating MRP for a new set of data and to sketch the resulting curve. This reinforces both computational skill and graphical interpretation.