If a firm in a perfectly competitive labor market is hiring workers where the Marginal Revenue Product of Labor (MRPL) is less than the wage rate, it is maximizing its profits.

In a perfectly competitive labor market, firms aim to maximize their profits by hiring workers based on the value they bring to the company, which is measured by the Marginal Revenue Product of Labor (MRPL). If a firm finds that the MRPL of a worker is less than the wage they are paying, it means that the worker is not generating enough revenue to cover their cost. In this situation, the firm is actually losing money on that worker, which is not a strategy for maximizing profits. For example, if a worker is paid $20 an hour but only produces $15 worth of goods, the firm should consider hiring fewer workers or finding more productive ones to improve overall profitability. Therefore, hiring at a point where MRPL is less than the wage is not profit-maximizing; firms should adjust their hiring to ensure that MRPL is equal to or greater than the wage.