This is a complete lesson plan about how monopoly differs from perfect competition, especially in regards to profit maximization and price discrimination. (It is the follow-up lesson to The Basics of Monopoly
, and it is also part of a larger unit on Market Structure
THIS DOWNLOAD INCLUDES:
1) Warm Up Activity -- students figure out how to maximize profits for a football game.
2) PowerPoint Presentation -- contains the lecture and is a guide for all activities.
3) Note Sheet -- students fill out this note sheet during the lecture.
4) Class Activity -- students calculate costs, revenue, and profit for a monopoly.
5) Homework -- questions on profit maximization and price discrimination.
6) Teacher Materials -- includes a detailed lesson plan, answer keys, and a "Read Me" document explaining how to use the materials included.
TOPICS FOR THE LECTURE:
1) Why a monopolist’s demand curve is downward sloping
2) Relationship between a monopolist’s demand and MR curve
3) Profit maximization under monopoly
4) Differences between perfect competition and monopoly
5) Definition of price discrimination
6) Explanation of how price discrimination works
(If you would like to download one of my PowerPoint slideshows to get a feel for my style, check out my free download here
This lesson is the fifth day of a seven-day unit on Market Structure
that was designed using national standards from the Council for Economic Education. It should take 80 - 90 minutes, which is perfect for the block schedule, but it can also be easily split in half for classes that run closer to 50 minutes.
The Logic of Monopoly - Lesson Plan and Activities
by Nick Samsal
is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License