A local cable company has become the only provider in your city, leading to significantly higher prices for customers. Which of the following best describes the situation and the potential role of government intervention?

The situation describes a monopoly, where one company controls the entire market for cable services, leading to higher prices for customers because they have no other options. This can be seen as a market failure because the lack of competition means the company has little incentive to keep prices low or improve services. Government intervention could help by regulating prices or encouraging competition, which could lead to better options for consumers. For example, the government might allow other companies to enter the market or even create a public cable service to give customers more choices. By stepping in, the government can help ensure fair prices and better services for everyone in the city.