A firm is considering hiring an additional worker. It estimates that this worker will generate an additional $300 in revenue, while the cost of hiring this worker is $250. Based on the Marginal Revenue Product of Labor (MRPL), which category does this decision belong to?

When a firm thinks about hiring an additional worker, it looks at how much extra money that worker will bring in compared to how much it will cost to hire them. In this case, the new worker is expected to generate $300 in revenue, but will cost the firm $250. To make a good decision, the firm compares these two amounts. Since the additional revenue ($300) is greater than the cost ($250), the Marginal Revenue Product of Labor (MRPL) is positive, which means it is a good choice to hire this worker. This decision shows that the firm can increase its profits by adding more labor, as the extra income exceeds the expenses involved.