Which one of the following statements about efficiency wages is correct?
A. An efficiency wage is an above-market wage that minimizes a firm's labor cost per unit of output.
B. An efficiency wage is a wage that automatically rises with the national index of labor productivity.
C. An efficiency wage is a wage payment necessary to compensate workers for risk of injury on the job.
D. An efficiency wage is a "wage" that contains a profit-sharing component as well as traditional hourly pay.
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