Answer:
a. above equilibrium, and profits are higher than otherwise.
Step-by-step explanation:
As if we pay high wages to our labors than our labors are happy and produced more quantities as compare to before which results into higher profits that shows the efficiency wages above equilibrium
Plus the high wages is connected to somewhat high cost for the company but in return the company could get high sales which transform into high profits.
Hence, the first option is correct