Suppose a profit-maximizing firm hires labour in a competitive labour market.If the value of marginal product of labour of the last worker hired is less than the wage rate,the firm

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If the value of marginal product of labour of the last worker hired is less than the wage rate, it means that the firm is paying more for the worker than what the worker is contributing to the output. In this case, the firm should decrease the quantity of labour it hires to avoid any extra cost. This will help the firm maximize its profits.

Suppose a Profit-Maximizing Firm Hires Labour in a Competitive Labour