If a company finds that the marginal revenue product of labor is greater than the wage paid to workers, what should it do?

If a company discovers that the marginal revenue product of labor is greater than the wage it pays its workers, it should consider hiring more workers. The marginal revenue product of labor measures the additional revenue generated by hiring one more worker, and if this amount is higher than the wage, it means that each new worker adds more value than they cost. For example, if a worker generates $100 in extra revenue but is paid only $80, the company benefits by $20 for each additional worker hired. By adding more employees, the company can increase its overall profits. In short, hiring more workers in this situation can be a smart decision to boost productivity and earnings.