A municipality has decided to set a toll for accessing a bridge it owns. To achieve allocative efficiency, what price should the municipality set for the toll, considering the bridge's marginal cost of maintenance is $3 per crossing and the demand curve indicates that consumers are willing to pay up to $5 for the crossing?

To achieve allocative efficiency, the municipality should set the toll price equal to the marginal cost of maintaining the bridge, which is $3 per crossing. This means that the price should reflect the true cost of providing the service, ensuring that resources are used where they are most valued. Since consumers are willing to pay up to $5, setting the toll at $3 allows for both a fair price for users and covers the costs of maintenance. For example, if the toll is set at $3, more people will likely use the bridge, as it is affordable, leading to increased traffic that helps justify the cost. Therefore, a toll of $3 balances the need for revenue with accessibility, promoting efficient use of the bridge.