3. In the U.S., city governments usually grant a monopoly right to a single cable company to provide cable service to people in that %g i.e., if you want television service to your house delivered through coaxial or fiberoptic cable, there is only one company from which to choose. Our denition of perfectly competitive markets stressed three characteristics: 1) small rms each producing a small percentage of total output, 2) rms produce homogeneous products, and 3) easy entry and exit from the industry. Recent developments in the industry (say, over the past decade) have made the cable market much more competitive. Present an argument why the cable industry may now satisfy each of these three criteria, even despite the obvious governmentgranted monopoly