Suppose at the current level of labor used, MRP = $20 and MFC = $20. To maximize profits, the firm should

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At the current level of labor, the MRP (marginal revenue product) is equal to the MFC (marginal factor cost). This means that the firm is already producing at the point where its profits are maximized. Any increase or decrease in labor would lead to a decline in profits. Therefore, maintaining the current level of labor is the best choice for the firm to maximize profits.

Suppose at the Current Level of Labor Used, MRP =