Under average-cost pricing, the government will raise the price of output whenever a firm's costs increase, and lower the price whenever a firm's costs decrease. over time, under the average-cost pricing policy, what will the local cable company most likely do?

The local cable company will most likely allow its own costs to increase. Under this average-cost pricing policy, when the local cable company's costs increase, the price of output will also be raised. This means that there will be more means for business for the local cable company, which is beneficial long-term.