Private ownership of a monopoly may benefit society because the monopoly will have an incentive to a

Private ownership of a monopoly may benefit society because the monopoly will have an incentive to b. price its good according to the intersection of marginal cost and average revenue .

Since Monopoly is a single seller who has a right to make his own price and the firm can discriminate the price according to its buyers. But the biggest area of concern is that society needs regular efficiency and optimal patterns of the cost-cutting and the research and development. Research and Development requires huge funds which are difficult to get financed by the profits of the competitive firms. So, monopoly determines its price at the point where marginal cost gets equated with the average revenue. It enables monopoly firms to earn the abnormal profits which are earned at the economies of scale as well as there is possibly the equal scope of Research and Development which brings regular technological advancements in the economy.