This is a lesson plan for online teaching during B.Ed. for commerce stream student on the topic cost of production

1. Lesson Plan-1
School: Online teaching Subject: Economics Class: XIIth
Period: 1st Branch: Micro economics Duration: 30 Min.
TOPIC- Cost of production
LEARNING OBJECTIVES
1. Students will be able to understand cost of production.
2. Students will be able to define cost of production.
3. Students will be able to explain cost of production.
INTRODUCTORY QUESTIONS
Pupil Teacher’sstatement Pupils statement
Que.1 what does you purchase from market? Ans.1 We purchase product of our needs.
Que.2 How do you purchase the product? Ans.2 By paying money.
Que.3 How the price of a product does is decided? Ans.3 On the basis of expenditure incurred in its production.
Que.4 what does we call that expenditure from producers’ point of view? Ans.4
(Problematic question)
Pupil teacher’s statement
Today, we will study about “cost of production”.

2. Development of Lesson Plan
Teaching
Point
Pupil teacher activity Pupils’ Activity White Board
Work
Resources Evaluation
1. Introduction
of Cost.
(developmentary
Question)
Que.1 what a producer have
to pay for purchasing raw
material for production?
Explanation)
Money expenditure incurred
by a firm in producing a
commodity is called as Cost
of Production.
The firm will have to pay in
the form of money
E.G. Rent, salaries and wages
to Labour, raw material etc.
The firm pays in the form of
money e.g., Rent to landlord,
salaries and wages,
interest, material, power,
transportation, etc.
Ans.1 Producer has to
pay money for
purchasing raw
material.
Students will
Listen
Carefully
The sum of
explicit and
Implicit cost is
known as cost of
production.
Que.1 What do you
understand by cost
of production?

3. 2. Types of
cost.
Developmentary
Question
Q.1 What payments are made
by a producer?
Pupil teacher explanation
There are 5 types of cost:-
1.explicit cost-
Those cash payment which
firms make to outsiders for
their goods and services.
2. Implicit cost:-
These are the cost of self-
employed resources.
3.Money cost:-
Are expenditure incurred on
hiring & buying of inputs.
4.Real Cost:- It refers to the
sacrifies,discomfort,
Pain involved in supplying
the factor of production by
their owners.
5. Opportunity cost:- It is
the cost of next best
alternative forgone.
Ans.1 Wages and
salaries, raw material,
fuel, power,
advertisement
expenses etc. are paid
by producer.
Students will
Listen
Carefully.
Explicit and Implicit
cost are opposite to
each other.
For success of
business
Opportunity cost
must be low.
Que.1 What is
implicit cost?
Que.2 Give 2
examples of explicit
cost?

4. 3. Fixed and
variable
cost.
Developmentary
Question
Que.1 How the level of
production does affect the
cost?
(Pupil teacher
Explanation)
On the basis of level of
output cost may be classified
in 2 categories
1:- Fixed Cost- These are
the cost which do not change
with the change in the level
of output. Fixed Cost
remains same even at Zero
level of production
2.Variable cost-
These are the cost which
varies directly with the
change in the level of output.
.
Ans.1If production is
high than cost will also
high and if production
is less costwill also low.
Students will
Listen
Carefully
Que.1 Give two
examples of each
fixed and variable
cost.

5. Closure
Money expenditure incurred by a firm in production of a commodity is called the cost of production. The firm paysin the form of money
e.g., Rent to landlord, salariesand wages, interest, material, power, transportation, etc. There are five typesof Costs, Explicit cost,
implicit cost, Money Cost, Real Cost, Opportunity cost.
The Short-run Cost is the cost which hasshort-term implications in the production process. . Shortrun costsbasically consist of FIXED
COST and VARIABLECOSTS. Fixed cost is the cost which doesnot change with change in the level of output. VariableCosts are the cost
which varies directly with the change in the level of output.
Recapitualization
Fill in the blanks:-
1. Insurancepremiumis the example of ______ cost.
2. Variable cost is also known as ___________.
3. Which cost remains same even at zero profit? _________.
4. Implicit cost is the cost of ___________.
5. Wages, fuels, power are examples of __________ cost.
Home assignment
1. Write the Definition of Cost of production.

6. 2. What is Opportunity cost?