Determine Whether the Statement Is True or False

question 108

Essay

Determine whether the statement is true or false.If it is true, explain why it is true.If it is false, give an example to show why it is false.
The function is continuous for all .

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Definitions:

Market Failure

A scenario where the free market fails to allocate resources efficiently, resulting in negative impacts on social welfare.

Pareto Optimality

The scenario in which resources are allocated in a manner that prohibits enhancing one individual's situation without negatively impacting another's.

Lost Surplus

Refers to the reduction in the combined consumer and producer surplus, often caused by inefficiencies in a market, such as taxes, tariffs, or other forms of market intervention.

Market Failure

A situation in which market forces, such as supply and demand, fail to allocate resources efficiently, often justifying government intervention.