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In Terms of Utility Theory, "Equilibrium" in the Real World

Question 152

Multiple Choice

In terms of utility theory, "equilibrium" in the real world means that


A) households are consuming as much of every commodity as they would like
B) households have spent their incomes in such a way that their overall satisfaction is maximized
C) households have spent their incomes in such a way that their marginal utility is maximized
D) households have spent their incomes in such a way that their marginal utility is zero for every product consumed
E) households have spent their incomes in such a way that their total utility is zero

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