What happens when an economy produces good in a way where marginal benefit equals marginal cost is that resource are allocated efficiently
Basically, when the marginal benefit equals the marginal cost, it shows that the quantity (output) produced is efficient.
Hence, the principle applies to an economy as well because when the total marginal benefit equal marginal cost, it shows that the output is efficient.
In conclusion, what happens when an economy produces good in a way where marginal benefit equals marginal cost is that resource are allocated efficiently.
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