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Socially Optimal
A situation in which resources are allocated in the most efficient manner from the perspective of society as a whole.
Subsidize
Financial support extended by a government or organization to lower the production costs or price of goods and services, making them more accessible to the public.
Negative Externalities
Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's price.
Taxed
The act of imposing financial charges on individuals or entities by a governmental organization in order to fund public spending.
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