Under what condition does the assumption that free and unregulated markets lead to an efficient outcome fail?

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When consumers lack complete informationWhen companies do not accept market prices for inputsWhen firms have pricing power in the product marketAny of the above scenarios

Explanation

The conclusion that free markets yield efficient results does not hold if consumers are uninformed, firms are not price takers in input markets, or if firms have control over prices in output markets. Therefore, all these conditions cause the breakdown of market efficiency.