PRICE DISCRIMINATION IN MONOPOLISTIC COMPETITION MARKET (NON- COMPETITIVE MARKET) “Strengthens Competition and Increases Efficiency of the Economy”

Abstract

This paper guides the importance of Micro Economics theory and practice through the real world application in the Non-Competitive Market Structure. The market structure consists of 4 markets namely, Monopoly market, Oligopoly market, Duopoly market and Monopolistic Competition Market. Each market has its own importance and implications and also provides in depth insight into an industry that is of major economic significance in this competitive business world. This paper mainly focuses on Monopolistic competitive market structure how price discrimination strengthens competition and increases efficiency when the number of firms is fixed and competitive. It analysis producer and consumer welfare relative to discrimination price through demand and supply effect.