As more cities allow competition in the market for cable television,

Question

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When cities allow competition in the market for cable television, it typically leads to lower prices and higher efficiency, as companies are forced to compete for customers. This results in a reduction of deadweight loss, or the inefficiencies in the market caused by a lack of competition. It is unlikely that more cable television providers will exit the market, as increased competition often attracts more providers to enter the market. Producer surplus may or may not increase, as it depends on the market structure and the specific dynamics of competition in that particular market. Economic profits may increase for some companies and decrease for others, depending on how they adjust to the new competitive landscape.

As More Cities Allow Competition in the Market for Cable