Riyad pizza company analysis 1

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Pizza Market Pricing Analysis

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  • Riyad pizza company analysis 1

    1. 1. Riyadh Pizza Company Saudi Style Supreme Scenario Analysis Perfect Competition MonopolyMonopoly with Price Discrimination
    2. 2. Riyadh Pizza Company Saudi Style Supreme Value PriceCustomer Q DemandAli 1 40Abdullah 2 38Ahmed 3 36Faisal 4 34Mohammed 5 32Mahmood 6 30Sultan 7 28Turki 8 26
    3. 3. Riyadh Pizza Company Saudi Style Supreme Value 40 PriceCustomer Q DemandAli 1 40 30Abdullah 2 38Ahmed 3 36 20Faisal 4 34Mohammed 5 32Mahmood 6 30 10Sultan 7 28Turki 8 26 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    4. 4. Riyadh Pizza Company Saudi Style Supreme Value 40 Price Marginal CostCustomer Q Demand 29 SARAli 1 40 30Abdullah 2 38Ahmed 3 36 20Faisal 4 34Mohammed 5 32Mahmood 6 30 10Sultan 7 28Turki 8 26 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    5. 5. Riyadh Pizza Company Saudi Style Supreme Value 40 Price Marginal CostCustomer Q Demand 29 SARAli 1 40 30Abdullah 2 38Ahmed 3 36 20Faisal 4 34Mohammed 5 32Mahmood 6 30 10Sultan 7 28Turki 8 26 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    6. 6. Riyadh Pizza Company Saudi Style Supreme Value Price Perfect CompetitionCustomer Q DemandAli 1 40 1. How many should I sell?Abdullah 2 38Ahmed 3 36Faisal 4 34 2. What will be total revenue?Mohammed 5 32Mahmood 6 30Sultan 7 28 3. What will be total cost?Turki 8 26 Marginal Cost 4. What will be total profit? 29 SAR
    7. 7. Riyadh Pizza Company Saudi Style Supreme Value Price Perfect CompetitionCustomer Q DemandAli 1 40 1. How many should I sell?Abdullah 2 38Ahmed 3 36Faisal 4 34 2. What will be total revenue?Mohammed 5 32Mahmood 6 30Sultan 7 28 3. What will be total cost?Turki 8 26 Marginal Cost 4. What will be total profit? 29 SAR
    8. 8. Riyadh Pizza Company Saudi Style Supreme Value Price Perfect CompetitionCustomer Q DemandAli 1 40 1. How many should I sell?Abdullah 2 38Ahmed 3 36Faisal 4 34 2. What will be total revenue?Mohammed 5 32Mahmood 6 30Sultan 7 28 3. What will be total cost?Turki 8 26 Marginal Cost 4. What will be total profit? 29 SAR
    9. 9. Riyadh Pizza Company Saudi Style Supreme Value Price Perfect CompetitionCustomer Q DemandAli 1 40 1. How many should I sell?Abdullah 2 38 Best Q = MR = MC Q = 6Ahmed 3 36Faisal 4 34 2. What will be total revenue?Mohammed 5 32 P = 30 TR = PQ = 6 x 30 = 180Mahmood 6 30Sultan 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. 10. Riyadh Pizza Company Saudi Style Supreme Perfect Competition
    11. 11. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40302010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    12. 12. Riyadh Pizza Company Saudi Style Supreme Perfect Competition4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    13. 13. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    14. 14. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    15. 15. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 29 Profit Per Pizza20 30 -29 = 110 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    16. 16. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 29 Profit Per Pizza20 30 -29 = 1 Total Profit 6x1=610 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    17. 17. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 29 Profit Per Pizza20 30 -29 = 1 Total Profit 6x1=610 Total Revenue 6 x 30 = 180 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    18. 18. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 29 Profit Per Pizza20 30 -29 = 1 Total Profit 6x1=610 Total Revenue 6 x 30 = 180 Total Cost 0 6 x 29 = 174 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    19. 19. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 29 Profit Per Pizza20 30 -29 = 1 Total Profit 6x1=610 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. 20. Riyadh Pizza Company Saudi Style Supreme Value Price MonopolyCustomer Q DemandAli 1 40 1. How many should I sell?Abdullah 2 38Ahmed 3 36Faisal 4 34 2. What will be total revenue?Mohammed 5 32Mahmood 6 30Sultan 7 28 3. What will be total cost?Turki 8 26 4. What will be total profit?Marginal Cost 29 SAR
    21. 21. Riyadh Pizza Company Saudi Style Supreme Value Price MonopolyCustomer Q DemandAli 1 40 1. How many should I sell?Abdullah 2 38Ahmed 3 36Faisal 4 34 2. What will be total revenue?Mohammed 5 32Mahmood 6 30Sultan 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. 22. Riyadh Pizza Company Saudi Style Supreme Value Total Marginal Price Revenue Revenue MonopolyCustomer Q Demand TR MRAli 1 40 40 40 1. How many should I sell?Abdullah 2 38 76 36Ahmed 3 36 108 32Faisal 4 34 136 28 2. What will be total revenue?Mohammed 5 32 160 24Mahmood 6 30 180 20Sultan 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. 23. Riyadh Pizza Company Saudi Style Supreme Value Total Marginal Price Revenue Revenue MonopolyCustomer Q Demand TR MRAli 1 40 40 40 1. How many should I sell?Abdullah 2 38 76 36Ahmed 3 36 108 32Faisal 4 34 136 28 2. What will be total revenue?Mohammed 5 32 160 24Mahmood 6 30 180 20Sultan 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. 24. Riyadh Pizza Company Saudi Style Supreme Value Total Marginal Price Revenue Revenue MonopolyCustomer Q Demand TR MRAli 1 40 40 40 1. How many should I sell?Abdullah 2 38 76 36Ahmed 3 36 108 32Faisal 4 34 136 28 2. What will be total revenue?Mohammed 5 32 160 24Mahmood 6 30 180 20Sultan 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. 25. Riyadh Pizza Company Saudi Style Supreme Value Total Marginal Price Revenue Revenue MonopolyCustomer Q Demand TR MRAli 1 40 40 40 1. How many should I sell?Abdullah 2 38 76 36Ahmed 3 36 108 32Faisal 4 34 136 28 2. What will be total revenue?Mohammed 5 32 160 24Mahmood 6 30 180 20Sultan 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. 26. Riyadh Pizza Company Saudi Style Supreme Value Total Marginal Price Revenue Revenue MonopolyCustomer Q Demand TR MRAli 1 40 40 40 1. How many should I sell?Abdullah 2 38 76 36 Best Q = MC = MR = 3Ahmed 3 36 108 32Faisal 4 34 136 28 2. What will be total revenue?Mohammed 5 32 160 24 P = 36 TR = PQ = 3 x 36 = 108Mahmood 6 30 180 20Sultan 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. 27. Riyadh Pizza Company Saudi Style Supreme Monopoly
    28. 28. Riyadh Pizza Company Saudi Style Supreme Monopoly40302010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    29. 29. Riyadh Pizza Company Saudi Style Supreme Monopoly4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    30. 30. Riyadh Pizza Company Saudi Style Supreme Monopoly4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge higher price to increase profits
    31. 31. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge higher price to increase profits
    32. 32. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge higher price to increase profits
    33. 33. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 29 Profit Per Pizza20 36 -29 = 710 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge higher price to increase profits
    34. 34. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 29 Profit Per Pizza20 36 -29 = 7 Total Profit 7 x 3 = 2110 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge higher price to increase profits
    35. 35. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 29 Profit Per Pizza20 36 -29 = 7 Total Profit 7 x 3 = 2110 Total Revenue 3 x 36 = 108 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge higher price to increase profits
    36. 36. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 29 Profit Per Pizza20 36 -29 = 7 Total Profit 7 x 3 = 2110 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. 37. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 29 Profit Per Pizza20 36 -29 = 7 Total Profit 7 x 3 = 2110 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. 38. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Deadweight Loss Price 3630 Marginal Cost 29 Profit Per Pizza20 36 -29 = 7 Total Profit 7 x 3 = 2110 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. 39. Riyadh Pizza Company Saudi Style Supreme Value Price Monopoly with PriceCustomer Q Demand DiscriminationAli 1 40Abdullah 2 38 1. How many should I sell?Ahmed 3 36Faisal 4 34Mohammed 5 32 2. What will be total revenue?Mahmood 6 30Sultan 7 28Turki 8 26 3. What will be total cost?Marginal Cost 4. What will be total profit? 29 SAR
    40. 40. Riyadh Pizza Company Saudi Style Supreme Value Price Monopoly with PriceCustomer Q Demand DiscriminationAli 1 40Abdullah 2 38 1. How many should I sell?Ahmed 3 36Faisal 4 34Mohammed 5 32 2. What will be total revenue?Mahmood 6 30Sultan 7 28Turki 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. 41. Riyadh Pizza Company Saudi Style Supreme Value Marginal Marginal Monopoly with Price Price Cost ProfitCustomer Q Demand MC DiscriminationAli 1 40 29 11Abdullah 2 38 29 9 1. How many should I sell?Ahmed 3 36 29 7Faisal 4 34 29 5Mohammed 5 32 29 3 2. What will be total revenue?Mahmood 6 30 29 1Sultan 7 28 29 -1Turki 8 26 29 -3 3. What will be total cost? Marginal Cost 4. What will be total profit? 29 SAR
    42. 42. Riyadh Pizza Company Saudi Style Supreme Value Marginal Marginal Monopoly with Price Price Cost ProfitCustomer Q Demand MC DiscriminationAli 1 40 29 11Abdullah 2 38 29 9 1. How many should I sell?Ahmed 3 36 29 7Faisal 4 34 29 5Mohammed 5 32 29 3 2. What will be total revenue?Mahmood 6 30 29 1Sultan 7 28 29 -1Turki 8 26 29 -3 3. What will be total cost? Marginal Cost 4. What will be total profit? 29 SAR
    43. 43. Riyadh Pizza Company Saudi Style Supreme Value Marginal Marginal Monopoly with Price Price Cost ProfitCustomer Q Demand MC DiscriminationAli 1 40 29 11Abdullah 2 38 29 9 1. How many should I sell?Ahmed 3 36 29 7 Until Marginal Profit is zero = 6Faisal 4 34 29 5Mohammed 5 32 29 3 2. What will be total revenue?Mahmood 6 30 29 1 40 + 38 + 36 + 34 +32 +30= 210Sultan 7 28 29 -1Turki 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. 44. Riyadh Pizza Company Saudi Style SupremeMonopoly with Price Discrimination
    45. 45. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination40302010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    46. 46. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    47. 47. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    48. 48. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    49. 49. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    50. 50. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    51. 51. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    52. 52. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    53. 53. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    54. 54. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination40 Price Varies 30 - 4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    55. 55. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination40 Price Varies 30 - 4030 Marginal Cost 29 Profit Per Pizza20 Varies10 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    56. 56. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination40 Price Varies 30 - 4030 Marginal Cost 29 Profit Per Pizza20 Varies Total Profit Add each profit10 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    57. 57. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination40 Price Varies 30 - 4030 Marginal Cost 29 Profit Per Pizza20 Varies Total Profit Add each profit10 Total Revenue 210 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki Charge different prices to different customers
    58. 58. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination40 Price Varies 30 - 4030 Marginal Cost 29 Profit Per Pizza20 Varies Total Profit Add each profit10 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. 59. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination40 Price Varies 30 - 4030 Marginal Cost 29 Profit Per Pizza20 Varies Total Profit Add each profit10 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. 60. Riyadh Pizza Company Saudi Style Supreme
    61. 61. Riyadh Pizza Company Saudi Style Supreme40302010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    62. 62. Riyadh Pizza Company Saudi Style Supreme4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    63. 63. Riyadh Pizza Company Saudi Style Supreme Perfect Competition40 Price Marginal Revenue30 30 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    64. 64. Riyadh Pizza Company Saudi Style Supreme40 Price 3630 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    65. 65. Riyadh Pizza Company Saudi Style Supreme Monopoly40 Price 3630 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    66. 66. Riyadh Pizza Company Saudi Style Supreme4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    67. 67. Riyadh Pizza Company Saudi Style Supreme Monopoly with Price Discrimination4030 Marginal Cost 292010 0 Ali Abdullah Ahmed Faisal Mohammed Mahmood Sultan Turki
    68. 68. Riyadh Pizza Company Saudi Style Supreme Perfect Monopoly Monopoly Competition PricePrice 30 36 30 - 40Qty 6 3 6Total Revenue 180 108 210Total Cost 174 87 174Profit 6 21 36
    69. 69. Riyadh Pizza Company Saudi Style Supreme Perfect Monopoly Monopoly Competition PricePrice 30 36 30 - 40Qty 6 3 6Total Revenue 180 108 210Total Cost 174 87 174Profit 6 21 36
    70. 70. Riyadh Pizza Company Saudi Style Supreme Perfect Monopoly Monopoly Competition PricePrice 30 36 30 - 40Qty 6 3 6Total Revenue 180 108 210Total Cost 174 87 174Profit 6 21 36 40 20 0
    71. 71. Riyadh Pizza Company Saudi Style Supreme The End

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