What is the primary goal of regulating monopolies in terms of allocative efficiency?

The primary goal of regulating monopolies is to promote allocative efficiency, which means ensuring that resources are distributed in a way that maximizes overall satisfaction in the economy. In a monopoly, a single company controls the market for a product or service, often leading to higher prices and less choice for consumers. This can result in a situation where people cannot buy what they want at a fair price, meaning that some consumers are left unsatisfied. For example, if a monopoly sets a high price for electricity, some families may not be able to afford it, leading to less electricity being used than what would be ideal for everyone. By regulating monopolies, the aim is to bring prices down and increase access, allowing consumers to get the products they need and improving overall welfare in society.