Production of Goods and Services · SHS2 Economics

Lesson notes

Learning Objectives

Indicator: 2.2.1.LI.1 - Determine Total, Average and Marginal Revenues.

By the end of the lesson, learners can:

Calculate Total Revenue (TR) using the formula TR = P × Q for given price and quantity data.
Calculate Average Revenue (AR) using the formula AR = TR ÷ Q and explain that AR equals price.
Calculate Marginal Revenue (MR) using the formula MR = Change in TR ÷ Change in Q.
Collect real price and quantity data from sellers and use it to compute TR, AR and MR for at least five goods.
Interpret the meaning of TR, AR and MR and explain how they differ from one another using a data table.

Sign in with your phone number to read the full note and download the GES plan - free.

Sign in with phone number

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.1 - Determine Total, Average and Marginal Revenues.
Suggested placement: Semester 1, Week 14 (Week 14 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)

Experiential Learning: Form mixed groups of different ability and gender and embark on a visit to the school canteen or nearby market or shop and interview the sellers on how much they sell a given good (price) and the total quantity of the goods available for sale. Use excel to generate a table for at least five goods with their respective prices and quantities available for sale. Use the data collected to determine the TR, AR and MR.
- Embracing diversity and practice inclusion
- Awareness of themselves and others taking into consideration their biases and stereotypes
Assessment (2.2.1.AS.1). The document marks these depth-of-knowledge levels for this indicator: Level 3 Strategic reasoning; Level 4 Extended critical thinking and reasoning.
Teaching and Learning Resources:
- Microsoft Excel
- Computers
- Projectors
- ICT lab
- Graph books
- Pencils
- Pens
- Markers
- White boards.