(Solved): If a firm is truly a natural monopoly, what is the problem with trying to achieve allocative efficie ...

If a firm is truly a natural monopoly, what is the problem with trying to achieve allocative efficiency by requiring the firm to set

? There is not enough information to make it work. The firm will lose money and have to be subsidized to stay in business. The firm will make even more profits than without regulation. The "capture theory" of regulation is more likely to come true.