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This paragraph has bottom margin 30px;
This paragraph has top margin 20px;
Here, the first paragraph has bottom margin 30px and second paragraph has top margin 20px. The margin between first and second should be 50px. By adding first paragraph 30px and second paragraph 20px (30px + 20px) but due to margin:collapse, the margin end up only with 30px. And, collapse the 20px margin. This is how margin:collapse.