In the absence of market failure. No efficiency argument can be made for government intervention in competitive markets. As long as competitive equilibrium works to maximize social surplus, and government intervention that moves the market away from competitive equilibrium will reduce social surplus .However when market failure does create ineffciency, government intervention to overcome market failure and increase social surplus supplies a public interest rationle for policy market to justity government regulation of industry. Must politicians understand that “fixing a market failure “ provides a politically attractive reason for intervening in the marketplace. For this reason, politicians frequently dress up their pet projiects as solutions to market failures real of imaginary