Use what you have learned to identify reasons that government create regulations in mixed market economies

Regulations in mixed market economies primarily made for two reasons:

- To ensure that the competition between business run fairly.

- To ensure the safety of the customers.

Market economies generally driven by profit. Companies tend to do various efforts to keep the cost of production low and obtain as much customers as they can.

In that efforts, companies might do some immoral things such as putting cheap/dangerous materials in their product or blatantly hurting their competitors by spreading lies/harassment.

This was the reason why government's intervention is necessary. Transition from market economies (where no government can interfere) to mixed economies (where the government can intervene) is very important for the safety of all people involved in the economy.

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