Take the following as truth: But second-best situations abound, and here's the upsetting thing that economic theory tells us about  In the world of the second best it is not guaranteed that a move toward eliminating the market imperfections will make the market more efficient . In such a situation, for example, cutting regulations and increasing competition might make consumers better off--or it might make them worse off.
Then the following statement: "Cutting regulations have a 50% chance of making consumers' situations improve." is true, false, or inconclusive?
Answer: False