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