If productivity increases as wages increase and firms pay a wage above the market clearing wage, then
A. these firms will go out of business in the long run because they will not be able to compete with firms paying lower wages.
B. these firms will have lower profit levels than their competitors.
C. these firms will face an excess demand for labor and will be able to hire the best workers in the market.
D. a potential benefit these firms may receive is a reduction in employee turnover.
Answer: D
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