In a competitive labor market,a firm faces a perfectly elastic supply of labor SL and can hire as many workers as it wants at a wage rate w*. The firm's demand for labor D is given by its marginal revenue product of labor MRPL.The profit-maximizing firm will hire L* units of labor at the point where the marginal revenue product of labor is equal to the wage rate.In a competitive labor market, a firm faces a perfectly elastic supply of labor SL and can hire as many workers as it wants at a wage rate w*. The firm's demand for labor DL is given by its marginal revenue product of labor MRPL . The profit-maximizing firm will hire L* units of labor at the point where the marginal revenue product of labor is equal to the wage rate