A firm in a perfectly competitive labor market has determined that the marginal revenue product of labor is $15 per hour, while the wage it pays its workers is $10 per hour. Which category best describes the firm's situation and the action it should consider taking?

In a perfectly competitive labor market, the marginal revenue product of labor (MRP) represents the additional revenue generated by hiring one more worker. In this case, the firm’s MRP is $15 per hour, while it only pays its workers $10 per hour. This means that the firm is earning more from each worker than it is spending on their wages, resulting in a profit of $5 per hour per worker. To maximize profits, the firm should consider hiring more workers since each additional worker adds more value than their cost. For example, if the firm hires two more workers, it could potentially increase its revenue by $30, while only spending an additional $20 on wages.