What is a common example of market failure that occurs when a market does not allocate resources efficiently?

A common example of market failure is pollution, which happens when businesses do not consider the negative effects of their activities on the environment. In a free market, companies focus on making profits, often ignoring how their production might harm air or water quality. This leads to too much pollution because the costs of cleaning it up are not included in the price of goods. For instance, a factory might release smoke into the air without paying for the damage it causes to people's health. As a result, society suffers from health problems and environmental damage, showing that the market failed to allocate resources in a way that benefits everyone.