Economists who see regulation as a way to correct the efficiency distortions of monopoly have usually suggested that ideally the government should force a monopoly to:
set price equal to marginal cost. set marginal revenue equal to marginal cost. set return on investment to competitive rates. mark-up prices over costs at fair rates.
In the past many economists have suggested that regulation rather than antitrust is a more appropriate government response to monopoly when:
special interest groups are especially influential in shaping government policy. monopoly develops because of economies of scale. when the forces of "creative destruction" are evident. anti-trust laws are ruled unconstitutional.