Which of the following is a characteristic of public goods that leads to market failures?

A characteristic of public goods that often leads to market failures is their non-excludability. This means that once a public good is provided, it is difficult or impossible to prevent people from using it, even if they do not pay for it. For example, consider a lighthouse; once it is built, all ships can benefit from its light without paying a fee. Because people can use the lighthouse without contributing to its cost, there is less incentive for private companies to build and maintain such goods. This can result in under-provision of important services, highlighting how public goods can fail in a market system.