Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds
Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds
Explanation
A profit-maximizing firm hires workers until the last one adds more to revenue than to cost. This maximizes profit.
If a worker adds less to revenue than to cost, hiring them reduces profit. Stop hiring before that point.
Keep hiring as long as each new worker brings in more money than they cost.