Which of the following is a real-world example of market failure due to the characteristics of public goods?

A real-world example of market failure due to public goods is the provision of street lighting in a city. Streetlights benefit everyone in the area, whether they contribute to their installation or not, which makes it hard for private companies to charge people directly for their use. This situation leads to underinvestment in streetlights because companies may not see a profit from it, resulting in some areas being poorly lit and unsafe. As a result, the government often steps in to provide street lighting, ensuring that everyone has access to this essential service. This shows how public goods can lead to market failure when private markets do not supply enough of them.