If a municipality sets the price of bridge access at the same level as its marginal cost, what is the likely outcome?

When a municipality sets the price of bridge access equal to its marginal cost, it means that the price reflects the actual cost of providing access to the bridge for each additional user. This approach is likely to lead to allocative efficiency, which occurs when resources are distributed in a way that maximizes overall benefit to society. For example, if the cost to maintain the bridge for one more car is $2, and the municipality charges $2, people who value crossing the bridge at $2 or more will use it, while those who value it less will not. This ensures that only those who truly benefit from using the bridge will pay for it, leading to a better allocation of resources. In summary, this pricing strategy helps balance supply and demand effectively, promoting efficient use of the bridge.