Lesson Notes By Weeks and Term - Senior Secondary 2

Revenue concepts

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Term: 1st Term

Week: 10

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Revenue Concepts

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Explain the meaning of revenue
  2. State and explain the types of revenue
  3. Perform calculations on revenue

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on cost concept

Students pay attention

STEP 2

EXPLANATION

She explains the meaning of revenue. She states and explains the types of revenue

Students pay attention and participates

STEP 3

DEMONSTRATION

She performs some calculations on revenue

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

REVENUE CONCEPT

Revenue refers to the money income which a firm earned from the sale of its goods and services produced.

It is price x quantity sold.

TYPES OF REVENUE

  1. TOTAL REVENUE (TR): This refers to the total income which a firm derives from the sale of its products.

          Total Revenue = Price x Quantity (TR = PxQ)

  1. AVERAGE REVENUE (A.R): The average revenue is the same as the price per unit of the commodity.  It is derived by dividing the total revenue by the total unit of the commodity sold.

REVENUE SCHEDULE OF A FIRM

Quantity sold (Output)

Total revenue (N)

Average Revenue (Unit Price) N

Napinal Revenue (N)

0

0

0

–

1

400

400

400

2

700

350

300

3

900

300

200

4

1040

260

140

5

1150

230

110

6

1200

200

50

The most profitable output is the point where marginal cost is equal to marginal revenue

EVALUATION:    1. Define revenue

  1. List and explain the types of revenue
  2. Use the table to answer the following questions

Quantity of yams (kg)

Total Revenue (TR) N

Marginal Revenue (ML) N

Total Cost (TC) N

Marginal Cost (MC) N

0

0

–

5

–

1

9

9

8

3

2

18

9

10

1

3

24

6

21

5

4

28

Q

25

4

5

30

2

25

U

6

P

1

25

O

7

28

-3

25

1

8

24

R

24

-2

 

  1. Complete the table by calculating the missing figures P, Q, R, S, T and U
  2. At what output is profit maximized
  3. Calculate the profit when the quantity sold is 5
  4. At what output does MC begins to rise

 

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively