What does government intervention have to do with market failure? Why do common resources cause market failure?

Market failure is a situation where goods and services offered in the market are not equally or sufficiently distributed. This situation can be corrected by government intervention through various enforcement policies. These policies include regulation; this is the use of certain rules to control the market activities for the government to monitor production. Examples of regulations are licensing of business to decide whether legal or not. The second policy is taxation; the government can highly tax to reduce or discourage the production of a certain product or tax lowly to encourage the production of a good. Lastly, the government can use subsidies to regulate the increase in price, especially to primary goods such as food. The government gives subsidies to take part in the consumer's costs.

Common resources cause market failure because they may be depleted due to excessive consumption leaving behind a generation with limited resources hence leading to market failure. They also lead to market failure due to their inequality in distribution; this makes them scarce.