Final answer:
Dido founded the city of Carthage on the coast of Libya after fleeing her home city of Tyre. Carthage would grow to be a significant ancient Mediterranean power.
Step-by-step explanation:
The city Dido is famously known to have founded on the coast of Libya is Carthage. According to ancient Roman sources, most notably the epic poem The Aeneid by Virgil, Dido was a princess from the Phoenician city of Tyre who fled after her brother Pygmalion killed her husband. Seeking a new home, she arrived on the North African coast, where she negotiated with the local inhabitants for a piece of land to establish her new city, Carthage, which became a major power in the ancient Mediterranean world.