Which of the following best describes a situation where government intervention may improve market efficiency due to market failure?

Government intervention can improve market efficiency in situations where there is market failure, meaning the market does not allocate resources in the best way for society. One common example is pollution, where businesses may not consider the environmental costs of their actions, leading to too much pollution and harm to public health. When the government steps in, it can set rules or taxes on pollution, encouraging companies to reduce their emissions and invest in cleaner technologies. This not only helps the environment but also leads to a healthier population, which can improve overall economic productivity. Therefore, government policies can correct the inefficiencies caused by market failures, benefiting everyone in the long run.