it will pay the firm to employ more workers. If the cost of hiring exceeds the marginal revenue product, the firm will be incurring losses. Therefore the firm will hire workers up to the point where the wage rate is equal to the marginal revenue product (note that this is another way of expressing the marginal cost = marginal revenue rule). In Figure 13.3, at wage rate equal to £W, the farmer will hire OL workers, if the wage rate falls to £W1, the farmer will hire more workers (OL1).