We have all seen the effects of government power on a communist Germany. And what happens when perfect competition becomes imperfect? You have two polar opposite ends of the spectrum and gray somewhere in the middle. So when should the government intervene? In the presence of market failures, government intervention may be necessary (McGraw-Hill, 2016). Markets do not always produce the right mix of outcomes (McGraw-Hill, 2016). A market failure is an imperfection in the market mechanism that prevents optimal outcomes (McGraw-Hill, 2016). In the Journal of International Business and Economics article, Market Efficiency and Government Intervention Revisited: What Do Recent Evidence Tell Us? According to Stiglitz and Brown, the following reasons could lead to market failure: Incomplete markets: For a market to be efficient, it must be complete. A complete market would provide all goods and services for which the cost of production is less than the price customers are willing to pay. Information defects: the vagueness in the market of certain goods such as technology is difficult to manage, here information is the main product to be exchanged, the seller cannot allow the buyer to have complete knowledge of the goods because if he did so, he would have given the goods to the buyer without being paid, the buyer has no way of knowing the quality of the goods and