In the context of labor demand, a firm will continue to hire additional workers until the marginal revenue product (MRP) equals the __________.

In the context of labor demand, a firm will continue to hire additional workers until the marginal revenue product (MRP) equals the wage rate it pays to each worker. The MRP is the additional revenue a firm earns from hiring one more worker. If the MRP is higher than the wage, the firm benefits by hiring more workers because they generate more money than they cost. However, once the MRP equals the wage, hiring an additional worker no longer increases profits, so the firm stops hiring. For example, if a worker produces goods worth $50 and the firm pays them $50, the firm will not gain any extra profit by hiring that worker, so it will stop at that point.