The optimal pollution level is found where the marginal social benefit of polluting equals the marginal social cost of polluting.

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The optimal level of pollution is considered to be at the point where the marginal social benefit of polluting (such as economic benefits from industrial activity) equals the marginal social cost of polluting (such as health and environmental damages), ensuring that the net social welfare is maximized.

The Optimal Pollution Level Is Found Where the Marginal Social