In a monopolistic market, allocative efficiency is achieved when the price of the good equals the __________.

In a monopolistic market, allocative efficiency is achieved when the price of the good equals the marginal cost of producing it. This means that the price consumers pay for a product is the same as the cost of making one more unit of that product. When this happens, resources are used in the best way possible because the amount produced perfectly matches what people want to buy at that price. For example, if a company produces ice cream and sells it for $3, and it costs $3 to make each additional scoop, then allocative efficiency is achieved. If the price is higher than the marginal cost, it means that there are people who want to buy more ice cream but can't afford it, indicating that the market is not using its resources efficiently.