11) Which of the following is true of equilibrium? A) Equilibrium refers to a situation where all economic agents simulaneously optimize after considering one another's actions. B) Equilibrium refers to a situation where the government allocates resources omong economic agents. C) Equilibrium refers to a situation where all economic agents are making suboptimal choices and have an incentive to change their behavior. D) Equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off.

## Step 1<br />The concept of equilibrium in economics is a state where economic forces such as supply and demand are balanced and a market is in a state of balance. This means that there is no external intervention, and the market is in a state of balance.<br /><br />## Step 2<br />Option A) states that equilibrium refers to a situation where all economic agents simultaneously optimize after considering one another's actions. This is true because in a state of equilibrium, each economic agent is making the best decision they can, taking into account the actions of others.<br /><br />## Step 3<br />Option B) suggests that equilibrium refers to a situation where the government allocates resources among economic agents. This is not true because equilibrium is a state of balance in the market, not a state where the government intervenes.<br /><br />## Step 4<br />Option C) suggests that equilibrium refers to a situation where all economic agents are making suboptimal choices and have an incentive to change their behavior. This is not true because in a state of equilibrium, each economic agent is making the best decision they can, not suboptimal ones.<br /><br />## Step 5<br />Option D) suggests that equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off. This is not true because in a state of equilibrium, no one can be made better off without making someone else worse off.