Arrange the following steps in the correct order to explain how technological advancements impact labor demand in a perfectly competitive labor market: A) Increase in productivity per worker B) Rise in marginal revenue product C) Higher demand for labor D) Increased hiring decisions

Technological advancements often lead to an increase in productivity per worker, which means that each worker can produce more in the same amount of time. When productivity rises, the marginal revenue product, or the extra money earned from hiring one more worker, also increases. As businesses see this higher marginal revenue product, they are more likely to want to hire additional workers, leading to a higher demand for labor. Consequently, this increased demand results in more hiring decisions by employers, as they seek to take advantage of the enhanced productivity. For example, if a factory introduces new machinery that allows workers to produce twice as many goods in a day, the factory will need to hire more workers to meet the increased production capacity.