gene's car wash is a natural monopoly. to wash 100 cars a week, if gene is unregulated, he would charge a price of $10. gene's average total cost for washing 100 cars is $8, his average variable cost is $6, and his marginal cost is $4. if gene is regulated using an average cost pricing rule, the price he is allowed to charge to wash 100 cars is group of answer choices

Respuesta :

The common fee pricing rule is a standardized pricing strategy that regulators impose on sure corporations to restrict what those organizations are capable to charge their consumers for its merchandise or services to a price equal to the prices quintessential to create the product or service.

What is the criticism of common price pricing?

The criticism of ACP is that the natural monopoly is held at zero economic profit significantly, and the company is not allowed to limit or expand its price above the market stage price. Therefore, the association will operate on the fee and purposefully make bigger the cost.

This pricing rule is every so often used with the aid of the authorities or regulators to mandate a monopoly to charge expenses equal to the common fee of production.

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