Competitive Factor Markets Demand for a Factor Input when Only one Input Is variable a Choosing the profit-maximizing amount of labor If MrPl> w(the marginal cost of hiring a worker): hire the worker If MRPI w. hire less labor o If MRPL= w profit maximizing amount of labor Chapter 14 Slide 11Chapter 14 Slide 11 Competitive Factor Markets ◼ Choosing the profit-maximizing amount of labor ⚫ If MRPL > w (the marginal cost of hiring a worker): hire the worker ⚫ If MRPL < w: hire less labor ⚫ If MRPL = w: profit maximizing amount of labor Demand for a Factor Input When Only One Input Is Variable