In a scenario where a municipality sets the price of a good to achieve allocative efficiency, the price must equal the __________ to ensure optimal resource allocation.

In a situation where a municipality wants to achieve allocative efficiency, the price of a good must equal the marginal cost. Marginal cost is the cost of producing one more unit of that good. When the price matches the marginal cost, it means that the resources used to make the good are being used in the most effective way possible. For example, if a city is providing public transportation, setting the ticket price equal to what it costs to add one more passenger ensures that the service is provided efficiently. This way, everyone who values the ride at that cost will use the service, leading to optimal resource allocation.