If a firm hires workers up to the point where the extra revenue generated by the last worker equals the extra cost,then the firm is

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This is because the point where the extra revenue generated by the last worker equals the extra cost is also known as the point of marginal revenue product (MRP), which represents the additional revenue generated by adding one more worker. At this point, the firm is maximizing its profit because it is producing at the most efficient level where the revenue generated from the last worker is equal to the cost of hiring that worker. Any additional worker hired would result in higher costs than the additional revenue generated, leading to lower profits for the firm.

If a Firm Hires Workers Up to the Point Where