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Marginal analysis holds that when all externalities have been internalized, the marginal social cost of every good (or bad) equals its marginal social benefit. Such a situation is sometimes referred to as a Kaldor-Hicks social optimum.
Marginal analysis holds that when all externalities have been internalized, the marginal social cost of every good (or bad) equals its marginal social benefit. Such a situation is sometimes referred to as a Kaldor-Hicks social optimum.
==See Also==
[[Coase theorem]]
[[Category:Economics]]
[[Category:Economics]]