SHS2 Economics · Semester 1 Week 15: Production of Goods and Services

Lesson notes

Learning Objectives

Indicator: 2.2.1.LI.2 - Sketch Total, Average and Marginal Revenues curves.

By the end of the lesson, learners can:

Plot Total Revenue (TR), Average Revenue (AR) and Marginal Revenue (MR) data points accurately on a graph.
Draw smooth TR, AR and MR curves from plotted data and label each curve correctly.
Describe the shape and slope of each revenue curve and explain what the shape tells us about the firm’s revenue behaviour.
Identify the relationship between the AR and MR curves when price is constant and when price falls as output increases.
Interpret a completed revenue curve diagram to answer questions about a firm’s revenue at different output levels.

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Curriculum details

Strand: Firms' Innovative Decision Making (Strand 2)
Sub-strand: Production of Goods and Services (2.1)
Content standard: 2.2.1.CS.2 - Demonstrate understanding of Revenue Concepts. 2.2.1.LO.1 Use information gathered from the environment to determine the time periods, TP, AP, MP, labour and capital-intensive methods and the cost of production. 2.2.1.LO.2 Establish the relationships among Total Revenue (TR), Average Revenue (AR), and Marginal Revenue (MR).
Indicator: 2.2.1.LI.2 - Sketch Total, Average and Marginal Revenues curves.
Suggested placement: Semester 1, Week 15 (Week 15 of the year)
Our suggestion, laid out in curriculum order across three terms of twelve weeks. NaCCA does not fix the week, so follow your school's scheme of learning.
Source document note: The official curriculum document has a fault in this entry, so the curriculum text above is transcribed exactly as printed:

core competencies - p.66 the document sets part of this text in a Calibri subset with no ToUnicode map, so the text layer reads as Latin Extended letters; the wording stored here was read off a 150 dpi render of printed page 66 and cross-checked against a letter-for-letter decode
core competencies - p.67 the document sets part of this text in a Calibri subset with no ToUnicode map, so the text layer reads as Latin Extended letters; the wording stored here was read off a 150 dpi render of printed page 67 and cross-checked against a letter-for-letter decode
Curriculum reference: NaCCA curriculum document, p. 70

Exemplars (from the NaCCA curriculum)

Building on What Others Say: In your mixed ability and gender groups, use your knowledge acquired on Total Revenue (TR), Average Revenue (AR), Marginal Revenue (MR) and with the data presented in excel sheet, plot your results in a graph book to draw TR, AR and MR curves
Assessment (2.2.1.AS.2). The document marks these depth-of-knowledge levels for this indicator: Level 4 Extended critical thinking and reasoning.
Teaching and Learning Resources:
- Microsoft Excel
- Computers
- Projectors
- ICT lab
- Graph books
- Pencils
- Pens
- Markers
- White boards.