Role of Government In Connecting Market Failure Market failure is very common in many markets in the world, it occurs when a well -established market fails to allocate resources properly. There are m

Role of Government In Connecting Market Failure Market failure is very common in many markets in the world, it occurs when a well -established market fails to allocate resources properly. There are m

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Role of Government In Connecting Market Failure

Market failure is very common in many markets in the world, it occurs when a well -established market fails to allocate resources properly. There are many types of market failures that exist but failure of the market on resources will be the main focus of the paper. It is the desire of any government to have a resourceful market because market is one of the major pillars of the economy. When market fails, the whole economy of the country fails and that is why the government intervenes in case a market fails.

There are many causes of market failure and that is where the government put a lot of pressure in order to rectify. The government has a major role to play in the market and its efforts cannot be ignored. The objective of the paper is to describe the role of government in correcting market failure being resourceful.

Market fails to be resourceful when there is no competition or when competition is not sufficient.

This occurs when the market experiences a high rate of mergers where many companies merge to form