Objectives (5 - 7 minutes)

1. Understand the Basics of Economic Competition: The teacher will introduce the concept of economic competition to the students. They will explain how businesses and firms compete against each other in the market to produce goods and services. The objective is to make the students understand the basic premise of economic competition.

2. Understand the Production and Cost Relationship in Economic Competition: The teacher will explain the relationship between production and cost in economic competition. They will use examples to illustrate how businesses strive to produce goods and services at the lowest possible cost to gain a competitive advantage.

3. Analyze the Impact of Competition on Production and Cost: The students will learn how competition affects the production and cost of goods and services. They will be encouraged to think critically and discuss how businesses' efforts to outperform each other in the market can lead to increased efficiency and lower prices.

Secondary Objectives:

1. Stimulate Discussion and Critical Thinking: Throughout the lesson, the teacher will encourage the students to participate in the discussion, ask questions, and share their thoughts. This will help in promoting active learning and fostering a deeper understanding of the topic.

2. Relate Theory to Real-World Examples: The teacher will use real-world examples and case studies to illustrate the concepts being taught. This will help the students to see the practical implications of economic competition, production, and cost.

Introduction (10 - 12 minutes)

1. Recall Prior Knowledge: The teacher will start by reminding the students of the basic concepts they have learned in previous lessons. They will ask questions such as: What is a business? What are goods and services? What is the role of prices in a market economy? This will help the students to connect the new topic with what they already know.

2. Problem Situations: The teacher will present two hypothetical situations to the students. The first situation could be about two local pizza shops in the same town competing for customers. The second situation could be about two smartphone manufacturers trying to outdo each other in the global market. These situations will be used as a springboard to introduce the concept of economic competition.

3. Real-World Context: The teacher will then contextualize the importance of the topic by discussing its real-world applications. They will explain how economic competition drives innovation and leads to the development of new and improved products and services. They will also highlight how understanding the relationship between production and cost can help businesses make strategic decisions and improve their profitability.

4. Topic Introduction: The teacher will introduce the topic of the day, "Competition Model: Production and Cost in Economics," and grab the students' attention by sharing two interesting facts or stories.

   • First, they could share the story of the "Cola Wars" between Coca-Cola and Pepsi, two of the world's largest beverage companies, which led to the invention of new flavors and marketing strategies.
   • Second, they could share the fact that the concept of economic competition dates back to ancient times, with the first recorded instance being a law in ancient Babylon that forbade a merchant from selling beer at a higher price than his neighbor.

These engaging stories and facts will pique the students' curiosity and set the stage for the in-depth exploration of the topic.

5. Lesson Overview: Finally, the teacher will give a brief overview of what the students will learn in the lesson. They will explain that the lesson will cover the basics of economic competition, the relationship between production and cost, and the impact of competition on these factors. They will also emphasize the importance of active participation and critical thinking in understanding and applying these concepts.

Development (20 - 25 minutes)

1. Introduction to Economic Competition (5 - 7 minutes):

   • The teacher will begin by restating the definition of economic competition and its importance in the market. They will emphasize that competition is not just about businesses trying to "win" against each other, but it is also about how this competition benefits consumers and the economy as a whole.
   • To illustrate this, the teacher will refer back to the hypothetical scenarios introduced in the beginning. They will explain how the local pizza shops and smartphone manufacturers are not just competing for business, but they are also incentivized to provide better products and services at lower prices. This benefits the consumers, who get more choices and better deals.
   • The teacher will also mention that economic competition is not always about the lowest price, but it can also be about product differentiation, quality, customer service, etc. They will briefly touch upon the concept of "monopolistic competition," where businesses try to differentiate their products to gain an edge in the market.
   • To further engage the students, the teacher could ask the class if they have any examples of businesses they know that are in direct competition with each other. They could also encourage the students to think about how they, as consumers, benefit from this competition.

2. Understanding the Production (5 - 7 minutes):

   • The teacher will then shift their focus to the production aspect of the competition. They will explain that businesses compete by producing goods and services.
   • The teacher will introduce the concept of "Production Function" in economics. This is a mathematical formula that shows how the amount of inputs (like labor and capital) used in production determines the amount of output (goods and services) produced. While this might be a bit advanced for 2nd-grade high school, the teacher could simply explain that the more resources a business has, the more it can produce.
   • The teacher will then use the hypothetical examples to illustrate the concept of production function. They can use the examples of how the pizza shops can produce more pizzas if they have more staff and ovens, and how the smartphone manufacturers can produce more phones if they have more factories and workers.
   • The teacher could also ask the students to think about any other factors that can affect the production of goods and services, such as technology, skills of the workers, etc. This will help the students to understand the concept of production in a broader sense.

3. Understanding the Cost (5 - 7 minutes):

   • Next, the teacher will explain the concept of cost in economic competition. They will describe cost as the amount of resources, like money, time, and effort, that a business has to give up to produce a good or service.
   • The teacher will introduce the concept of "Opportunity Cost" - the cost of forgoing the next best alternative when making a decision. They will use the example of how if a business decides to produce more of one good, it has to give up the opportunity to produce more of another good.
   • The teacher will also explain the concept of "Fixed Cost" and "Variable Cost." Fixed costs are costs that do not change with the level of production, like rent and salaries. Variable costs are costs that change with the level of production, like raw materials and utilities. They will use the examples from the hypothetical scenarios to illustrate these concepts.
   • The teacher will also explain the concept of "Economies of Scale" - the cost advantage that businesses can achieve when they produce more. They can explain that as the businesses produce more, they can spread their fixed costs over more units, and this can lead to lower average costs.
   • At the end of the cost section, the teacher could ask the students to think of any other costs that a business might have, and how these costs can affect the business's decision-making process.

4. The Relationship Between Production and Cost (3 - 5 minutes):

   • Finally, the teacher will bring together the concepts of production and cost to explain the relationship between the two in economic competition. They will explain that businesses try to produce the most at the lowest cost possible to gain a competitive advantage.
   • The teacher will use the examples from the hypothetical scenarios to illustrate this relationship. They can explain how the pizza shop that can produce the most pizzas at the lowest cost (while maintaining quality) will likely be more successful. The same goes for the smartphone manufacturer that can produce the most phones at the lowest cost (again, while maintaining quality).
   • The teacher can also discuss the implications of this relationship for the consumers. They can explain that when businesses are able to produce at lower costs, they can potentially pass on these savings to the consumers in the form of lower prices or better quality products.

By the end of this development stage, the students should have a clear understanding of the relationship between production and cost in economic competition. They should also understand how these concepts affect the businesses and the consumers. The teacher should encourage students to ask questions or share their thoughts to ensure that they have grasped the concepts well.

Feedback (8 - 10 minutes)

1. Summarize and Reflect (3 - 4 minutes):

   • The teacher will start the feedback session by summarizing the main points of the lesson. They will reiterate the definition of economic competition, the relationship between production and cost, and the impact of competition on these factors.
   • The teacher will then link the theory to the real-world examples and case studies that were discussed during the lesson. This will help the students to better understand and remember the concepts.
   • The teacher will also highlight the key terms that were introduced during the lesson, such as "Production Function," "Opportunity Cost," "Fixed Costs," and "Variable Costs." They will ask the students to remember these terms as they are fundamental in understanding the topic.

2. Reflection (3 - 4 minutes):

   • The teacher will then propose that the students take a moment to reflect on what they have learned. They will ask the students to think about the most important concept they learned during the lesson and how it connects with the real world.
   • The teacher will also ask the students to think about any questions or doubts they still have about the topic. They will assure the students that it is normal to have questions and that it is part of the learning process.
   • To facilitate this reflection, the teacher could ask the students to write down their thoughts in their notebooks. This will also serve as a form of formative assessment, as the teacher can review these reflections to gauge the students' understanding of the topic.

3. Classroom Discussion (2 - 3 minutes):

   • After the reflection, the teacher will open the floor for a class discussion. They will encourage the students to share their reflections and ask any remaining questions.
   • The teacher will also ask the students to share their thoughts on how the concepts learned today can be applied in real life. They could ask questions like: How does economic competition affect the prices of the products you buy? Can you think of any examples of businesses that are in direct competition with each other?
   • The teacher should ensure that all the students have the opportunity to participate in the discussion. They can do this by either calling on individual students or by having the students volunteer to speak.

By the end of the feedback stage, the teacher should have a good understanding of the students' grasp of the topic. They should also have a list of any remaining questions or areas of confusion that they can address in future lessons or through one-on-one support as needed.

Conclusion (5 - 7 minutes)

1. Summary and Recap (2 minutes):

   • The teacher will start the conclusion by summarizing the main points of the lesson. They will reiterate the definition of economic competition and its role in the market. They will then recap the relationship between production and cost, highlighting the concepts of "Production Function," "Opportunity Cost," "Fixed Costs," and "Variable Costs."
   • The teacher will also remind the students about the real-world examples and case studies that were used to illustrate these concepts. They will emphasize how economic competition, production, and cost are not just theoretical concepts, but they have real implications for businesses and consumers.

2. Connecting Theory, Practice, and Applications (2 - 3 minutes):

   • The teacher will then explain how the lesson linked theory with practical applications. They will highlight how the theoretical concepts of economic competition, production, and cost were brought to life through the real-world examples and case studies.
   • They will also discuss how understanding these concepts can help businesses make strategic decisions and improve their profitability. For instance, a business that understands the relationship between production and cost can find ways to produce more efficiently, which can lead to increased profits.
   • The teacher will also stress the importance of these concepts for everyday life. They can explain how economic competition affects the prices of the products we buy, and how businesses' drive to produce at the lowest cost can lead to improved quality and innovation.

3. Additional Materials (1 - 2 minutes):

   • The teacher will suggest some additional materials for the students to further explore the topic. These could include relevant articles, documentaries, or books. For instance, they could recommend the book "The Armchair Economist" by Steven E. Landsburg, which provides a fun and accessible introduction to the economics of everyday life.
   • The teacher could also encourage the students to keep an eye on the news for stories about economic competition, production, and cost. This will help them to see these concepts in action and keep their learning relevant and up to date.

4. Relevance to Everyday Life (1 minute):

   • Finally, the teacher will conclude the lesson by explaining the importance of the topic for everyday life. They will stress that the concepts of economic competition, production, and cost are not just abstract economic theories, but they are fundamental to understanding how our economy works.
   • The teacher could give some examples of how these concepts affect our daily lives. They could explain how economic competition affects the prices of the products we buy, and how understanding the relationship between production and cost can help us make more informed decisions as consumers.
   • The teacher could also discuss how these concepts can be applied in the students' future careers. For instance, understanding the basics of economic competition can be valuable for aspiring entrepreneurs, while understanding the relationship between production and cost can be useful for anyone involved in business or management.

By the end of the conclusion, the students should have a clear understanding of the importance and relevance of the topic. They should also feel motivated to further explore the topic and apply their learning in real-life situations.