Which of the following is not an example of a market failure?Question 2Select one:a.A positive externalityb.A public goodc.Information asymmetryd.Coase theorem

d. Coase theorem

The Coase theorem is not an example of a market failure. Instead, it is a theory that suggests that under certain conditions, disputes over property rights can be resolved through negotiation or bargaining, regardless of the initial allocation of rights. This theorem is often used to solve problems related to externalities, which are a type of market failure.

On the other hand, a positive externality (option a) is a benefit that affects someone who did not choose to incur that benefit. A public good (option b) is a product that one individual can consume without reducing its availability to another individual, and from which no one is excluded. Information asymmetry (option c) occurs when one party in a transaction has more or better information than the other. These are all examples of market failures.