Government Control & Market Failure

Governments are sometimes intervening in the economic activity; to provide a nonmarket mechanism for allocation
scarce resources when the market economy results in inefficiency known as market failure. This includes Price
controls (i.e. ceilings, floors, and taxes) or laws impacting different types of industries (i.e. Monopoly, Oligopoly). A
well as attempts to redistribute income, regulate externalities and protect common resources.