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.
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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