What is the correct order of steps a firm should take to maximize profits in a labor market?

To maximize profits in a labor market, a firm should first determine the optimal number of workers needed. This involves analyzing how many workers will produce enough goods or services to meet demand without overspending on wages. Next, the firm should assess the productivity of each worker, ensuring that they are getting enough output relative to the wages paid. For example, if a bakery hires an additional baker, it should consider whether the extra bread produced will cover the cost of that baker's salary and contribute to overall profits. Finally, the firm should adjust its hiring practices based on this analysis, hiring more workers if they add value or reducing staff if they do not, all while keeping an eye on market conditions.