The figure illustrates Sally's budget line and her preferences. Point ________ is Sally's best affordable point, and Sally prefers point ________ to point ________

Monopoly is a prime example of a market failure that leaves potential Pareto improvements unexploited. This is demonstrated by the fact that

a. monopolies produce public goods rather than private goods b. monopolies substitute excludability for rivalry c. monopolies substitute rivalry for excludability d. the price in a monopolized market is less than the marginal cost of production e. the price in a monopolized market exceeds the marginal cost of production

Figure 17-10

Refer to . With the tariff, the quantity of saddles imported is
a.
Q₃ - Q₁.
b.
Q₃ - Q₂.
c.
Q₄ - Q₁.
d.
Q₄ - Q₂.