Market failure is the situation in the free market caused due to the inefficient appropriation of goods and services. The labour and product costs depend upon the market interests in the typical free markets, any type of change in the interests results in the relative price changes as well. An environmental market failure exists when human movement in a market economy is depleting basic non-sustainable assets, upsetting delicate biological systems, or overburdening biosphere waste absorption limits US dairy market is one of the best examples of market failure because the industry produces more titan the consumption. Producers got the government subsidies, and the farmers produce more and more to get these government funds. Resulting in surplus government purchases while the demand is decreasing and producers are sloping up the production, this is an unmistakable illustration of market failure. (Boyce. 2021) Government policies can help to fix the main causes for the market failure and implementation of rules and regulations will bring the market back to the normal. For example, government can make various policies to reduce the demand for negative externalities and to increase the positive ones, such as. 0 Increasing the prices of negative externalities by imposing higher taxes, 0 Providing subsidies on positive externalities to increase the demand of such products. 0 Governments should have the control over the prices by fixing a minimum and maximum selling prices for any kind of goods or services. 0 There should be fixed minimum wages and maximum working hours per week to take control over the labour market. 0 Proper education and trainings should be provided to overcome tmemployment. 0 Policies to overcome poverty and inequality