Monopoly production will result in a socially optimal allocation of resources if the regular use of resources can continue indefinitely.
If you are regulated to produce at the production level produce where price (aka demand) intersects the marginal cost curve (P = MC). At this power level, distribution efficiency is achieved and there are no deadweight losses.
Socially optimal price is the price at which monopoly achieves allocative efficiency (DARP=MC). A fair return price is a viable alternative, as such a low ceiling price would hurt some monopolies economically. A fair return price is found if the price equals the average total cost (DARP=ATC).
The socially optimal level of pollution is the level of pollution that society would choose if all costs and benefits of pollution were fully considered.
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