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When home builders construct a new housing development, they will usually sell the rights to lay cable to a single cable tele
A cable company in this situation: would not be free to charge any price it chooses because it would still be A. constrained
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Answer #1

The option B would be the right answer. As, there is only one company that sells the cable . There are no close substitutes available and therefore no competition. Hence, the company has acquired the monopoly power to charge any price of its own choice and earn profits.

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