“monopolistic competition is monopolistic up to the point at which consumers become willing to buy close-substitute products and competitive beyond that point.” this statement recognizes that products of monopolistically competitive firms
a) are usually preferred by consumers, giving them monopoly power; however, consumers will seek substitutes if the price is too high, making them competitive. b) may be preferred by consumers, giving them monopoly power; however, consumers will seek substitutes if the price is too high, making them competitive. c) may or may not be viewed as different from the product of a monopoly. d) have to be limited in supply for the firm to experience monopoly power.