If a firm sells its product in a monopolistic market, even though the firm operates in a perfectly competitive labor market, the firm will employ workers up to the point where

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In a perfectly competitive labor market, a profit-maximizing firm will hire workers up to the point where the marginal revenue product (MRP) of labor equals the wage rate. This is because the MRP represents the additional revenue generated by hiring one more worker, and the firm will continue to hire as long as the revenue from hiring an additional worker is greater than or equal to the cost (wage) of hiring that worker.

If a Firm Sells Its Product in a Monopolistic Market