If a municipality sets the price of a bridge at the point where it equals the marginal cost of providing that bridge, what is the likely outcome in terms of resource allocation?

When a municipality sets the price of a bridge equal to the marginal cost of providing it, this means that the price reflects the true cost of building and maintaining the bridge. This approach leads to allocative efficiency, where resources are used in a way that maximizes total benefit to society. For example, if the cost to build and maintain the bridge is $5 per crossing, charging this amount ensures that only those who value using the bridge at or above this price will cross it. As a result, the bridge will not be overcrowded with those who do not value it enough to pay the cost, and the municipality can effectively manage its resources. Overall, this pricing strategy helps ensure that the bridge serves those who need it most while also covering its costs.