Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: sales maximisation
Learning Objective/s:
  • Describe the concept of sales maximisation and how it differs from profit maximisation.
  • Explain the decision rule (P = MC) and the profit‑constraint condition for a sales‑maximising firm.
  • Analyse the conditions under which firms adopt sales maximisation (large fixed costs, market‑share goals, managerial utility, access to capital).
  • Evaluate the pricing and welfare implications of sales‑maximising behaviour.
  • Apply the concept to compare outcomes for firms with different objectives using simple numerical examples.
Materials Needed:
  • Projector and screen for slides/diagrams
  • Whiteboard and markers
  • Handout with demand, MR, MC diagrams and comparison table
  • Calculator or spreadsheet for quick profit calculations
  • Sample case‑study worksheets on firm objectives
 Introduction:
Begin with a quick poll: “If your company’s boss asked you to increase sales even if profit fell, what would you do?” Connect this to students’ prior knowledge of profit maximisation. By the end of the lesson they will be able to describe the sales‑maximisation objective, apply its decision rule, and evaluate its market implications.
Lesson Structure:
  1. Do‑now (5') – Students answer the poll on sticky notes and share responses.
  2. Mini‑lecture (10') – Define sales maximisation, present the formal condition and contrast with profit maximisation using the comparison table.
  3. Diagram activity (10') – In pairs, draw the price‑output diagram showing P = MC and identify the sales‑maximising output.
  4. Case‑study analysis (12') – Work through the hypothetical firms table, calculate the profit constraint and discuss why Firm B chooses sales maximisation.
  5. Guided discussion (8') – Evaluate pricing‑policy implications and regulator concerns; teacher checks understanding with targeted questions.
  6. Exit ticket (5') – Students write one advantage and one drawback of sales maximisation.
Conclusion:
Summarise that sales maximisation shifts the decision rule to P = MC while maintaining a minimum profit threshold, leading to higher output and lower prices. Ask students to complete an exit ticket stating one real‑world example of a firm that might use this objective. For homework, assign a short essay comparing profit and sales maximisation in a chosen industry.