If the marginal product of labor is greater than the wage paid to labor, it means that hiring more labor will always increase the firm's overall profit.

When the marginal product of labor is greater than the wage paid, it means that each additional worker contributes more value to the company than it costs to hire them. This extra value is what we call profit. For example, if a worker can produce $100 worth of goods in a day but costs the company only $80 in wages, the firm gains $20 in profit from that worker. Therefore, hiring more workers in this situation is beneficial because it increases overall profit. However, it's important to remember that this might not always hold true in the long run as other factors can change.