Socially Optimal Quantity of Pollution

The socially optimal quantity of pollution is the level at which the marginal benefit of reducing pollution is equal to the marginal cost of reducing it. This means that it is the level of pollution that maximizes total welfare while minimizing economic costs. In other words, it is the level at which the economic and social benefits of reducing pollution are in balance. The optimal quantity of pollution may vary by region, as the benefit-cost curves can vary depending on the physical and economic conditions in the area.