market failure occurs whenever

Market failure occurs whenever the market fails to deliver an efficient allocation of resources, resulting in a misallocation that leads to a loss of economic and social welfare. It happens when the forces of supply and demand do not achieve a balance, causing inefficient distribution of goods and services that harms some or all participants in society. Causes include externalities (where costs or benefits affect third parties), information failures, market control by monopolies or oligopolies, and the presence of public goods that markets cannot adequately provide.