In the southern part of the country​ Nirobia, the workers at a factory owned by Mambiki​ & Co. have gone on a strike demanding higher wages. Mambiki​ & Co. is a firm that produces auxiliary defense equipment for aircraft. A national business daily reports that following the closure of the factory for 6​ weeks, the management has finally agreed to the wage hike. Kiah Desmond and her friend Rania​ Ali, both students of​ economics, are discussing the news report in class. Kiah argues that the​ factory's profits are likely to fall due to the wage hike. Rania on the other hand feels that Mambiki will increase the price of their products in order to compensate for the increase in costs. Which of the​ following, if​ true, will strengthen​ Rania's argument?
A.The government is the only buyer of the specialized defense equipment produced by Mambiki​ & Co.
B.Following the announcement of the wage​ hike, Mambiki's share values dropped significantly.
C.The government is considering the introduction of a price ceiling in the market for auxiliary defense equipment.
D.In order to reduce dependence on foreign​ suppliers, the Nirobian government recently announced tax exemptions for the defense industry for the next five years.
E.Since most workers at the factory have permanent employment​ contracts, there was a slight fall in productivity with the increase in wage.