Question

What is an essential government role in market economies? to control prices and costs to prevent monopolies and collusion to provide luxury items to market goods and services

Answer 1

In a market economy depending on the level of government control their could potentially be no role for the government. However, government involvement could range from preventing monopolies all the way to impacting prices. It depends on the type of market economy. 

Answer 2

to prevent monopolies and collusion

Step-by-step explanation:

Remember that market economy is the one in which the production of goods and services are directed by the laws of supply and demand, this means it is conformed by the collective actions of individuals or organizations seeking their own advantage . Therefore, the governmet's role is to ensure fair competition between these individuals or organizations. It makes sure markets are open and work properly by creating laws and encouraging or damping demand. It also penalizes monopolies which limit competition.