-(Exhibit: Demand and Supply in a Perfectly Competitive Labor Market) The firm should hire: A) where MRP_L = MFC_L. B) when quantity demanded is greater than quantity supplied. C) where MRP_L =MP_L ×P of output. D) at a lower wage than W_L.

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In a perfectly competitive labor market, a firm should hire workers up to the point where the marginal revenue product of labor (MRP_L) equals the marginal factor cost of labor (MFC_L). This ensures that the cost of hiring an additional worker is equal to the revenue generated by that worker.