If the wage rate doesn't change but a profit-maximizing competitive firm hires fewer workers, we know that

Question

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If the wage rate remains the same, a profit-maximizing competitive firm will hire workers up until the point where the marginal cost of hiring an additional worker (i.e. the wage rate) equals the marginal revenue product of the worker (i.e. the additional revenue that the worker generates). Thus, if the firm hires fewer workers, it implies that either the demand for the product has fallen or there has been a reduction in labor productivity.

If the Wage Rate Doesn't Change but a Profit-Maximizing Competitive