Lesson Plan

• Describe the core assumptions of marginal utility theory and why they are considered rational.
• Explain at least four empirical and theoretical limitations of the theory.
• Analyse how these limitations affect the application of marginal utility in real‑world consumer decisions.
• Compare marginal utility theory with a basic behavioural economics perspective.

• Projector and screen
• PowerPoint slides summarising assumptions and limitations
• Printed handout with the assumptions vs. limitations table
• Worksheet with short case‑study questions
• Whiteboard and markers

Begin with a quick poll: “When you buy a snack, do you always choose the best value?” Use responses to highlight everyday decision‑making. Review the law of diminishing marginal utility from the previous lesson. State that today’s success criteria are to identify key assumptions and critically evaluate their realism.

1. Do‑Now (5’) – Students list three everyday choices they make and note any factors that might prevent perfect rationality.
2. Mini‑lecture (10’) – Present the six core assumptions of marginal utility theory with concise examples.
3. Group activity (12’) – Using the handout table, groups match each assumption to its most relevant limitation; report back.
4. Whole‑class discussion (8’) – Explore behavioural anomalies (e.g., addiction, habit) that breach the assumptions.
5. Case‑study worksheet (10’) – Students apply the theory to a real product, then critique its fit using the limitations.
6. Check for understanding (5’) – Quick quiz via Kahoot on assumptions vs. limitations.

Summarise that while marginal utility offers a useful baseline, its strict rationality assumptions often break down in practice. Ask students to write one “take‑away” on an exit ticket and suggest they read a short article on behavioural economics for homework.