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When two elements, A and B, form two different compounds, the masses of element B that combine with 1 g of element A can be expressed as a ratio of small whole numbers. Which law does this refer to?
Pigouvian Tax
A tax imposed on any market activity that generates negative externalities, intended to correct the market outcome by internalizing the costs of the externality.
Marginal Social Cost
The complete expense incurred by society to produce an extra unit of a good or service, encompassing both individual costs and external impacts.
Marginal Social Benefit
Marginal social benefit is the additional gain to society as a whole from an additional unit of a good or service.
Socially Optimal
Refers to a situation where goods or services are produced and consumed at a level that maximizes overall social welfare.
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