Why do functions have holes and asymptotes?

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Holes in a function's graph occur when the function is undefined at certain points, typically due to a zero in the denominator, but can be removed through algebraic manipulation, leading to removable discontinuities. In contrast, asymptotes arise when a function approaches a specific value infinitely closely as x approaches infinity, without ever reaching it. This distinction is crucial, as holes indicate points of discontinuity while asymptotes signify behavior at the extremes of the function. The identification of these features requires a deeper examination of the function's behavior rather than simple zero comparisons. Understanding these concepts is essential for analyzing the continuity and limits of functions effectively.
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I don't understand why there is a hole in the graph of a function when there is a non-zero number in the numerator of a function and zero in the denominator, but an asymptote when both the numerator and the denominator are zeroes. Can someone explain why this is the case?
 
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It's a little more complicated than that. Basically, holes occur when you have a function that's smooth and continuous but at certain points is undefined, usually because the denominator becomes zero. These can often be removed by algebraic manipulation, and then are called removable discontinuities. Though sometimes there are more complex problems that cannot be removed.

An asymptote occurs when a function approaches a specific value in such a way that as X -> +/- infinity the Y value approaches the specific value infinitely close, but never actually reaches it (you can switch the Y's and the X's here, this is the difference between a vertical and a horizontal asymptote).

The places these occur are not as simple as you described (1/x has both vertical and horizontal asymptotes and never becomes 0/0), but can often be found by examining the behavior of the function in question.
 
Here is a little puzzle from the book 100 Geometric Games by Pierre Berloquin. The side of a small square is one meter long and the side of a larger square one and a half meters long. One vertex of the large square is at the center of the small square. The side of the large square cuts two sides of the small square into one- third parts and two-thirds parts. What is the area where the squares overlap?

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