Economists generally assume that:

A) firms act to maximize the dividends paid to stockholders.
B) households act to maximize their wealth.
C) households act to maximize utility.
D) firms act to maximize revenue.
E) both households and firms act to minimize expenditures.

Maximize Utility

The process or goal of obtaining the highest level of satisfaction or benefit possible from available resources or choices.

Households

Economic units consisting of all persons who occupy a housing unit, including single families, individuals living alone or with others, but who make joint financial decisions.

Maximize Wealth

The process or strategy aimed at increasing the net value of assets owned by an individual or corporation.