The average cost-pricing rule has been more commonly used in the United States than the marginal cost-pricing rule that relies heavily on subsidies.

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The average cost-pricing rule has been more commonly used in the United States because it allows for the recovery of all costs over the long term, making it more financially sustainable for many businesses and utilities without relying heavily on subsidies, unlike the marginal cost-pricing rule which can often result in prices that do not cover total costs, necessitating subsidies.

The Average Cost-Pricing Rule Has Been More Commonly Used in the United