In order to maximize profits, a firm should continue hiring workers until the _____ of the last worker hired equals the Marginal Factor Cost.

In order to maximize profits, a firm should keep hiring workers until the value that the last worker adds to the firm, known as the Marginal Revenue Product (MRP), equals the cost of hiring that worker, called the Marginal Factor Cost (MFC). This means that the extra money the last worker brings in should be the same as what it costs to pay that worker. For example, if hiring one more worker costs the firm $15 per hour, the extra revenue that this worker generates should also be $15 per hour for the firm to be making the best choice. If the MRP is greater than the MFC, the firm can increase profits by hiring more workers, but if the MRP is less than the MFC, it would be better to hire fewer workers. Therefore, finding this balance is key to ensuring the firm operates efficiently and profitably.