Pizza Market Pricing Analysis

1. Riyadh Pizza Company
Saudi Style Supreme
Scenario Analysis
Perfect Competition
Monopoly
Monopoly with Price Discrimination

2. Riyadh Pizza Company
Saudi Style Supreme
Value
Price
Customer Q Demand
Ali 1 40
Abdullah 2 38
Ahmed 3 36
Faisal 4 34
Mohammed 5 32
Mahmood 6 30
Sultan 7 28
Turki 8 26

3. Riyadh Pizza Company
Saudi Style Supreme
Value 40
Price
Customer Q Demand
Ali 1 40 30
Abdullah 2 38
Ahmed 3 36
20
Faisal 4 34
Mohammed 5 32
Mahmood 6 30 10
Sultan 7 28
Turki 8 26
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

4. Riyadh Pizza Company
Saudi Style Supreme
Value 40
Price Marginal Cost
Customer Q Demand 29 SAR
Ali 1 40 30
Abdullah 2 38
Ahmed 3 36
20
Faisal 4 34
Mohammed 5 32
Mahmood 6 30 10
Sultan 7 28
Turki 8 26
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

5. Riyadh Pizza Company
Saudi Style Supreme
Value 40
Price Marginal Cost
Customer Q Demand 29 SAR
Ali 1 40 30
Abdullah 2 38
Ahmed 3 36
20
Faisal 4 34
Mohammed 5 32
Mahmood 6 30 10
Sultan 7 28
Turki 8 26
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

6. Riyadh Pizza Company
Saudi Style Supreme
Value
Price Perfect Competition
Customer Q Demand
Ali 1 40 1. How many should I sell?
Abdullah 2 38
Ahmed 3 36
Faisal 4 34 2. What will be total revenue?
Mohammed 5 32
Mahmood 6 30
Sultan 7 28
3. What will be total cost?
Turki 8 26
Marginal Cost 4. What will be total profit?
29 SAR

7. Riyadh Pizza Company
Saudi Style Supreme
Value
Price Perfect Competition
Customer Q Demand
Ali 1 40 1. How many should I sell?
Abdullah 2 38
Ahmed 3 36
Faisal 4 34 2. What will be total revenue?
Mohammed 5 32
Mahmood 6 30
Sultan 7 28
3. What will be total cost?
Turki 8 26
Marginal Cost 4. What will be total profit?
29 SAR

8. Riyadh Pizza Company
Saudi Style Supreme
Value
Price Perfect Competition
Customer Q Demand
Ali 1 40 1. How many should I sell?
Abdullah 2 38
Ahmed 3 36
Faisal 4 34 2. What will be total revenue?
Mohammed 5 32
Mahmood 6 30
Sultan 7 28
3. What will be total cost?
Turki 8 26
Marginal Cost 4. What will be total profit?
29 SAR

9. Riyadh Pizza Company
Saudi Style Supreme
Value
Price Perfect Competition
Customer Q Demand
Ali 1 40 1. How many should I sell?
Abdullah 2 38 Best Q = MR = MC Q = 6
Ahmed 3 36
Faisal 4 34 2. What will be total revenue?
Mohammed 5 32 P = 30 TR = PQ = 6 x 30 = 180
Mahmood 6 30
Sultan 7 28
3. What will be total cost?
Turki 8 26 TC = 29 x 6 = 174
Marginal Cost 4. What will be total profit?
TR - TC = 180 - 174 = 6
29 SAR

10. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition

11. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
30
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

12. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
30
Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

13. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

14. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

15. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
Profit Per Pizza
20 30 -29 = 1
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

16. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
Profit Per Pizza
20 30 -29 = 1
Total Profit
6x1=6
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

17. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
Profit Per Pizza
20 30 -29 = 1
Total Profit
6x1=6
10 Total Revenue
6 x 30 = 180
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

18. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
Profit Per Pizza
20 30 -29 = 1
Total Profit
6x1=6
10 Total Revenue
6 x 30 = 180
Total Cost
0 6 x 29 = 174
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

19. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
Profit Per Pizza
20 30 -29 = 1
Total Profit
6x1=6
10 Total Revenue
6 x 30 = 180
Total Cost
0 6 x 29 = 174
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Total Profit
180 - 174 = 6

20. Riyadh Pizza Company
Saudi Style Supreme
Value
Price Monopoly
Customer Q Demand
Ali 1 40 1. How many should I sell?
Abdullah 2 38
Ahmed 3 36
Faisal 4 34 2. What will be total revenue?
Mohammed 5 32
Mahmood 6 30
Sultan 7 28
3. What will be total cost?
Turki 8 26
4. What will be total profit?
Marginal Cost
29 SAR

21. Riyadh Pizza Company
Saudi Style Supreme
Value
Price Monopoly
Customer Q Demand
Ali 1 40 1. How many should I sell?
Abdullah 2 38
Ahmed 3 36
Faisal 4 34 2. What will be total revenue?
Mohammed 5 32
Mahmood 6 30
Sultan 7 28
3. What will be total cost?
Turki 8 26
4. What will be total profit?
Marginal Cost
29 SAR Calculate Total Revenue at each price
Calculate Marginal Revenue
Find where MR = MC

22. Riyadh Pizza Company
Saudi Style Supreme
Value Total Marginal
Price Revenue Revenue Monopoly
Customer Q Demand TR MR
Ali 1 40 40 40 1. How many should I sell?
Abdullah 2 38 76 36
Ahmed 3 36 108 32
Faisal 4 34 136 28 2. What will be total revenue?
Mohammed 5 32 160 24
Mahmood 6 30 180 20
Sultan 7 28 196 16 3. What will be total cost?
Turki 8 26 208 12
4. What will be total profit?
Marginal Cost
29 SAR Calculate Total Revenue at each price
Calculate Marginal Revenue
Find where MR = MC

23. Riyadh Pizza Company
Saudi Style Supreme
Value Total Marginal
Price Revenue Revenue Monopoly
Customer Q Demand TR MR
Ali 1 40 40 40 1. How many should I sell?
Abdullah 2 38 76 36
Ahmed 3 36 108 32
Faisal 4 34 136 28 2. What will be total revenue?
Mohammed 5 32 160 24
Mahmood 6 30 180 20
Sultan 7 28 196 16 3. What will be total cost?
Turki 8 26 208 12
4. What will be total profit?
Marginal Cost
29 SAR Calculate Total Revenue at each price
Calculate Marginal Revenue
Find where MR = MC

24. Riyadh Pizza Company
Saudi Style Supreme
Value Total Marginal
Price Revenue Revenue Monopoly
Customer Q Demand TR MR
Ali 1 40 40 40 1. How many should I sell?
Abdullah 2 38 76 36
Ahmed 3 36 108 32
Faisal 4 34 136 28 2. What will be total revenue?
Mohammed 5 32 160 24
Mahmood 6 30 180 20
Sultan 7 28 196 16 3. What will be total cost?
Turki 8 26 208 12
4. What will be total profit?
Marginal Cost
29 SAR Calculate Total Revenue at each price
Calculate Marginal Revenue
Find where MR = MC

25. Riyadh Pizza Company
Saudi Style Supreme
Value Total Marginal
Price Revenue Revenue Monopoly
Customer Q Demand TR MR
Ali 1 40 40 40 1. How many should I sell?
Abdullah 2 38 76 36
Ahmed 3 36 108 32
Faisal 4 34 136 28 2. What will be total revenue?
Mohammed 5 32 160 24
Mahmood 6 30 180 20
Sultan 7 28 196 16 3. What will be total cost?
Turki 8 26 208 12
4. What will be total profit?
Marginal Cost
29 SAR Calculate Total Revenue at each price
Calculate Marginal Revenue
Find where MR = MC

26. Riyadh Pizza Company
Saudi Style Supreme
Value Total Marginal
Price Revenue Revenue Monopoly
Customer Q Demand TR MR
Ali 1 40 40 40 1. How many should I sell?
Abdullah 2 38 76 36 Best Q = MC = MR = 3
Ahmed 3 36 108 32
Faisal 4 34 136 28 2. What will be total revenue?
Mohammed 5 32 160 24 P = 36 TR = PQ = 3 x 36 = 108
Mahmood 6 30 180 20
Sultan 7 28 196 16 3. What will be total cost?
Turki 8 26 208 12 TC = 29 x 3 = 87
4. What will be total profit?
Marginal Cost TR - TC = 108 - 87 = 21
29 SAR Calculate Total Revenue at each price
Calculate Marginal Revenue
Find where MR = MC

27. Riyadh Pizza Company
Saudi Style Supreme
Monopoly

28. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
30
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

29. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

30. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge higher price to increase profits

31. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge higher price to increase profits

32. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge higher price to increase profits

33. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
Profit Per Pizza
20 36 -29 = 7
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge higher price to increase profits

34. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
Profit Per Pizza
20 36 -29 = 7
Total Profit
7 x 3 = 21
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge higher price to increase profits

35. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
Profit Per Pizza
20 36 -29 = 7
Total Profit
7 x 3 = 21
10 Total Revenue
3 x 36 = 108
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge higher price to increase profits

36. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
Profit Per Pizza
20 36 -29 = 7
Total Profit
7 x 3 = 21
10 Total Revenue
3 x 36 = 108
Total Cost
0 3 x 29 = 87
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge higher price to increase profits

37. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
Profit Per Pizza
20 36 -29 = 7
Total Profit
7 x 3 = 21
10 Total Revenue
3 x 36 = 108
Total Cost
0 3 x 29 = 87
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Total Profit
Charge higher price to increase profits 108 - 87 = 21

38. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Deadweight Loss Price
36
30 Marginal Cost
29
Profit Per Pizza
20 36 -29 = 7
Total Profit
7 x 3 = 21
10 Total Revenue
3 x 36 = 108
Total Cost
0 3 x 29 = 87
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Total Profit
Charge higher price to increase profits 108 - 87 = 21

39. Riyadh Pizza Company
Saudi Style Supreme
Value
Price
Monopoly with Price
Customer Q Demand Discrimination
Ali 1 40
Abdullah 2 38 1. How many should I sell?
Ahmed 3 36
Faisal 4 34
Mohammed 5 32
2. What will be total revenue?
Mahmood 6 30
Sultan 7 28
Turki 8 26
3. What will be total cost?
Marginal Cost 4. What will be total profit?
29 SAR

40. Riyadh Pizza Company
Saudi Style Supreme
Value
Price
Monopoly with Price
Customer Q Demand Discrimination
Ali 1 40
Abdullah 2 38 1. How many should I sell?
Ahmed 3 36
Faisal 4 34
Mohammed 5 32
2. What will be total revenue?
Mahmood 6 30
Sultan 7 28
Turki 8 26
3. What will be total cost?
Marginal Cost 4. What will be total profit?
29 SAR
Calculate Marginal Profit at each price
Stop where MR = MC

41. Riyadh Pizza Company
Saudi Style Supreme
Value Marginal Marginal Monopoly with Price
Price Cost Profit
Customer Q Demand MC Discrimination
Ali 1 40 29 11
Abdullah 2 38 29 9 1. How many should I sell?
Ahmed 3 36 29 7
Faisal 4 34 29 5
Mohammed 5 32 29 3 2. What will be total revenue?
Mahmood 6 30 29 1
Sultan 7 28 29 -1
Turki 8 26 29 -3
3. What will be total cost?
Marginal Cost 4. What will be total profit?
29 SAR

42. Riyadh Pizza Company
Saudi Style Supreme
Value Marginal Marginal Monopoly with Price
Price Cost Profit
Customer Q Demand MC Discrimination
Ali 1 40 29 11
Abdullah 2 38 29 9 1. How many should I sell?
Ahmed 3 36 29 7
Faisal 4 34 29 5
Mohammed 5 32 29 3 2. What will be total revenue?
Mahmood 6 30 29 1
Sultan 7 28 29 -1
Turki 8 26 29 -3
3. What will be total cost?
Marginal Cost 4. What will be total profit?
29 SAR

43. Riyadh Pizza Company
Saudi Style Supreme
Value Marginal Marginal Monopoly with Price
Price Cost Profit
Customer Q Demand MC Discrimination
Ali 1 40 29 11
Abdullah 2 38 29 9 1. How many should I sell?
Ahmed 3 36 29 7 Until Marginal Profit is zero = 6
Faisal 4 34 29 5
Mohammed 5 32 29 3 2. What will be total revenue?
Mahmood 6 30 29 1 40 + 38 + 36 + 34 +32 +30= 210
Sultan 7 28 29 -1
Turki 8 26 29 -3
3. What will be total cost?
TC = 29 x 6 = 174
Marginal Cost 4. What will be total profit?
29 SAR 11 + 9 + 7 + 5 +3 +1= 36

44. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination

45. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

46. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

47. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

48. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

49. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

50. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

51. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

52. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

53. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

54. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
Price
Varies 30 - 40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

55. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
Price
Varies 30 - 40
30 Marginal Cost
29
Profit Per Pizza
20 Varies
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

56. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
Price
Varies 30 - 40
30 Marginal Cost
29
Profit Per Pizza
20 Varies
Total Profit
Add each profit
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

57. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
Price
Varies 30 - 40
30 Marginal Cost
29
Profit Per Pizza
20 Varies
Total Profit
Add each profit
10 Total Revenue
210
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

58. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
Price
Varies 30 - 40
30 Marginal Cost
29
Profit Per Pizza
20 Varies
Total Profit
Add each profit
10 Total Revenue
210
Total Cost
0 6 x 29 = 174
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Charge different prices to different customers

59. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
Price
Varies 30 - 40
30 Marginal Cost
29
Profit Per Pizza
20 Varies
Total Profit
Add each profit
10 Total Revenue
210
Total Cost
0 6 x 29 = 174
Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
Total Profit
Charge different prices to different customers 210 - 174 = 36

60. Riyadh Pizza Company
Saudi Style Supreme

61. Riyadh Pizza Company
Saudi Style Supreme
40
30
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

62. Riyadh Pizza Company
Saudi Style Supreme
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

63. Riyadh Pizza Company
Saudi Style Supreme
Perfect Competition
40
Price
Marginal Revenue
30 30
Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

64. Riyadh Pizza Company
Saudi Style Supreme
40
Price
36
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

65. Riyadh Pizza Company
Saudi Style Supreme
Monopoly
40
Price
36
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

66. Riyadh Pizza Company
Saudi Style Supreme
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

67. Riyadh Pizza Company
Saudi Style Supreme
Monopoly with Price Discrimination
40
30 Marginal Cost
29
20
10
0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki

68. Riyadh Pizza Company
Saudi Style Supreme
Perfect Monopoly
Monopoly
Competition Price
Price 30 36 30 - 40
Qty 6 3 6
Total Revenue 180 108 210
Total Cost 174 87 174
Profit 6 21 36

69. Riyadh Pizza Company
Saudi Style Supreme
Perfect Monopoly
Monopoly
Competition Price
Price 30 36 30 - 40
Qty 6 3 6
Total Revenue 180 108 210
Total Cost 174 87 174
Profit 6 21 36

70. Riyadh Pizza Company
Saudi Style Supreme
Perfect Monopoly
Monopoly
Competition Price
Price 30 36 30 - 40
Qty 6 3 6
Total Revenue 180 108 210
Total Cost 174 87 174
Profit 6 21 36
40
20
0

71. Riyadh Pizza Company
Saudi Style Supreme
The End