San Francisco Is a Beautiful City with Great Weather

San Francisco is a beautiful city with great weather.It also has limited real estate,creating a higher cost of living.How do firms account for these two conflicting compensating differentials when determining wages?

A) When in conflict,the cost of living is always the determining factor for wages.
B) The market will reach an equilibrium price that takes both of these factors into consideration while ensuring an adequate supply of necessary labor.
C) Individuals who are attracted to the prospect of living in San Francisco will accept a much lower wage,despite the increased cost of living.
D) In most cases,firms can rely on government-subsidized housing in order to relieve the upward pressure on wages.
E) This conflict produces a wage mismatch,resulting in an economy where certain jobs cannot be staffed.