The Marginal Revenue Product of Labor (MRPL) is always equal to the wage paid to workers in a competitive market, ensuring firms will hire up to the point where MRPL exceeds labor costs.

The Marginal Revenue Product of Labor (MRPL) is the extra money a company makes from hiring one more worker. In a competitive market, firms will keep hiring until the MRPL is equal to the wage they pay that worker. This is because if the MRPL is higher than the wage, the company can make more profit by hiring more workers. For example, if a company pays a worker $15 an hour, and that worker generates $20 an hour in revenue, the MRPL exceeds the wage, so it makes sense for the company to hire that worker. By hiring up to the point where MRPL equals the wage, firms ensure they are maximizing their profits while making good use of their resources.