What is a primary reason for government intervention in a market economy?

A primary reason for government intervention in a market economy is to correct market failures. Market failures happen when the free market does not allocate resources efficiently, leading to problems like pollution or monopolies. For example, if a factory pollutes a river, it affects everyone who uses that water, but the factory may not pay for the damage it causes. The government can step in by creating laws to limit pollution or by taxing the factory to make it responsible for its actions. This helps ensure that the costs of pollution are considered, leading to a cleaner environment and fairer competition in the market.