Which of thefollowing, iftrue, would weakenMatthew's claim that the wage hike will increaseproductivity?

A.

Wages account for a large proportion ofPortico's variable costs.

B.

The existingcapital-labor ratio at Portico is optimal and the production level is efficient.

C.

The market for textiles in this country is monopolistically competitive.

D.

If the wage hike isimplemented, thenPortico's workers will be earning more than their peers in other textile firms.

E.

Contrary to popularbelief, nonmonetary incentives are usually not very effective in increasing productivity.