Which of the Following Is Not a Reason That Paying

Multiple Choice

Which of the following is not a reason that paying efficiency wages may increase a firm's profit?

A) Efficiency wages increase worker health and therefore increase worker productivity.
B) Efficiency wages decrease worker turnover and therefore decrease hiring and training costs.
C) Efficiency wages decrease worker shirking and therefore increase worker productivity.
D) Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.