Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: Advantages and disadvantages of small and large firms
Learning Objective/s:
  • Describe the main advantages of small firms and of large firms.
  • Explain the key disadvantages associated with each type of firm.
  • Compare how firm size influences flexibility, cost structure, market power and innovation.
  • Analyse the impact of economies and diseconomies of scale on pricing and competition.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handout with the comparison table
  • Student worksheet for Venn‑diagram activity
  • Exit‑ticket slips
 Introduction:
Ask students to name a local independent shop and a large supermarket they frequent, then discuss what they think makes each successful. Review that firms aim to maximise profit and must consider costs and market power. State that by the end of the lesson they will be able to list at least three advantages and three disadvantages of both small and large firms.
Lesson Structure:
  1. Do‑now (5'): Students write examples of small and large firms and one perceived strength for each (quick share).
  2. Mini‑lecture – Small firms (10'): Present advantages and disadvantages using slides; ask checking questions.
  3. Mini‑lecture – Large firms (10'): Present advantages and disadvantages; highlight economies of scale.
  4. Comparison activity (15'): In pairs, complete a Venn diagram comparing the two types, using the handout.
  5. Class discussion (10'): Groups share key points; teacher emphasises flexibility vs bureaucracy and cost implications.
  6. Exit ticket (5'): Write one advantage of a small firm and one disadvantage of a large firm that could affect market outcomes.
Conclusion:
We have examined how firm size shapes flexibility, costs, market power and innovation. Remember that economies of scale give large firms cost advantages, while small firms can respond quickly to consumer needs. For homework, complete the worksheet analysing a real‑world business of your choice, identifying whether it behaves more like a small or large firm and justifying your answer.