When markets fail, public policya. can do nothing to improve the situationb. can potentially remedy the problem an increase economicefficiency. c. can always remedy the problem and increase economicefficiency. d. can in theory, remedy the problem, buy in practice, publicpolicy has proven to be ineffective

b. can potentially remedy the problem an increase economic efficiency.

Explanation:

A market failure can be defined as a situation in which the market fails to produce an efficient level of output required to meet the demands of the consumers or customers.

This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market. Thus, the demand of the consumer of these goods and services are not being met with the level of supply (output) required i.e the forces of demand and supply are not efficient in producing the level of output required by the economy.

Some of the causes of market failure are imperfect information, monopoly, oligopoly, externalities etc.

Hence, when markets fail, public policy can potentially remedy the problem an increase economic efficiency.

Some of the public policy are pollution permits, government price controls, advertising etc.

a progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. that means it takes a bigger percentage from high income earners than it does from low income people.