Which of the following factors contribute to market failures? Select all that apply.

Market failures happen when the free market does not allocate resources efficiently, leading to a loss of economic value. Several factors can cause these failures, such as externalities, which are costs or benefits that affect people who are not directly involved in a transaction. For example, if a factory pollutes a river, the nearby community suffers from health problems and decreased property values, even though they are not part of the factory's operations. Another factor is information asymmetry, where one party has more or better information than the other, such as when a car seller knows more about the vehicle’s condition than the buyer. These issues can prevent the market from working properly, leading to outcomes that are not beneficial for society as a whole.