In monopolist competition, the number of firms in the market is

A. more than socially optimal.

B. less than socially optimal.

C. exactly the same as socially optimal.

In monopolist competition, the number of firms in the market is Option B. less than socially optimal.

In monopolist competition, single sellers are dominant in the market. The seller solely takes the decision of quantity that must be produced and supplied and the price that must be changed from the consumers for the product. The socially optimal output is the level of output where the product reaches that level where the cost of manufacturing the product is minimum. The monopoly firm will produce less than this level so that they can increase the price of the per-unit product manufactured. Since there is no competition the firm manages to sell its products at a higher price.