Which of the following statements is true of equilibrium?
A) Economic agents have an incentive to divert from equilibrium.
B) Each economic agent can reach equilibrium irrespective of the actions of others.
C) In equilibrium, the opportunity cost of the choices made by each economic agent is zero.
D) In equilibrium, all economic agents are choosing the best feasible option simultaneously.

Question

Quizplus · Accepted Answer

In equilibrium, all economic agents are choosing the best feasible option simultaneously, which means that no individual can improve their position by changing their actions. The other statements are incorrect. Economic agents may have an incentive to divert from equilibrium, as it may benefit them individually, but doing so would push the market away from equilibrium. The actions of other economic agents may affect an individual's ability to reach equilibrium. The opportunity cost of choices made in equilibrium may not be zero, but rather the lowest possible given the available options.

Which of the Following Statements Is True of Equilibrium