To maximize profits a firm will employ workers up to the point at which for the last worker employed:

The correct answer is: point at which the marginal labor costs equal the marginal revenue generated for the firm from that last worker employed.

Explanation:

To begin with, in neoclassical microeconomics, the marginal revenue productivity theory of wages establish that companies will employ workers up to the point at which for the last worker employed the marginal revenue product of labor equals the real wage that will be paid to the worker in where if the marginal revenue that the last worker brings is less than the wage rate then it will cause a decrease in the profits to keep employing that last worker and the correct action will be to fired him.

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