If a firm's Marginal Revenue Product of Labor (MRPL) is equal to the wage paid to its workers, the firm is maximizing its profit by hiring the optimal number of workers. True or False?

True. When a firm's Marginal Revenue Product of Labor (MRPL) equals the wage it pays its workers, it means the value generated by each additional worker is exactly equal to the cost of hiring them. This balance helps the firm maximize its profits because hiring more workers would cost more than the revenue they would bring in, while hiring fewer would mean missing out on potential earnings. For example, if a firm pays a worker $15 per hour and that worker generates $15 in extra revenue, the firm is making the best decision for profit. Therefore, at this point, the firm has found the optimal number of workers to employ.