Monopolistic competition is monopolistic up to the point at which consumers become willing to buy close substitute products and competitive beyond that pointexplain?

Monopolistic competition occurs when many firms sell products that are differentiated but serve as close substitutes for one another. In this market structure, each firm has some degree of market power, allowing them to set prices above marginal cost. However, as consumers become willing to switch to similar products offered by competitors, the market becomes more competitive, limiting the ability of any single firm to maintain high prices. This balance between differentiation and substitutability is what defines the nature of monopolistic competition.