In a competitive market, a firm will maximize profits by hiring workers up to the point where the value of the marginal product of labor equals the wage rate.

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In a competitive market, a firm maximizes profits by hiring workers up to the point where the marginal revenue product of labor (value of the marginal product of labor) equals the wage rate, ensuring that the cost of hiring an additional worker is equal to the revenue generated by that worker.

In a Competitive Market, a Firm Will Maximize Profits by Hiring