1.2.5 Which of the following are examples of Pareto-efficient changes? Explain your answers.

a. The Hooterville Police Department implements costsaving programs without having to sacrifice the quality of their services.

b. Competition is introduced into the satellite television industry, and monthly rates drop. A study shows that benefits to consumers are larger than the lost monopoly profits.

c. James trades his Harley-Davidson motorcycle to Lola for her John Deere tractor.

d. The government eliminates an international transportation tax on airline tickets when airlines complain that the tax was costing them business.