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:. 1. have to be limited in supply for the firm to experience monopoly power2. may give them some monopoly power, given strong consumer preferences for their product. However consumers 3. will substitute away if prices become too high relative to similar products offered in the market. 4. may or may not be viewed as different from the product of a monopoly.