Average Cost Pricing Rule

Some companies are monopolies. For example, your power company would be a monopoly. It’s the only option you have to keep the lights on.

Regulations are usually in place so you don’t get ripped off too badly. One of the tools the government uses to figure out fair pricing is the average cost pricing rule. What you pay will be the price it costs your power company to keep your lights on, buy necessary product, and pay its employees. All of them (they're union after all, so good luck getting rid of them).