I think it's all of the above. When one company controls a market, it has very few incentives to serve the customer. This means that it can charge higher prices, lower the quality, and provide fewer choices.
Our local cable company has a monopoly on cable services in this area. It's the only one that can provide us with cable TV. Its prices are high. And recently it removed one of the favorite PBS channels in our area, despite loud objections from its subscribers. The company hasn't even seemed interested in restoring this channel.
Do monopolies usually tend to result in higher prices, lower quality, fewer choices, or all of the above. I think it's higher prices.
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