Answer & Explanation
A) Prices do not reflect the full social cost of production
Prices do not reflect the full social cost of production is an example of Market failure.
A market failure occurs when the supply of a good or service is insufficient to meet demand. This results in an inefficient distribution of resources among market participants.
It also occurs if externalities are not accounted for.
If a firm fails to maximize its profits this is not a general market failure.