One purpose that firms hire labor at the point where w is equal to P x MPPL is: (1) if w < P x MPPL, the cost (w) of hiring additional workers exceeds the gains (P x MPPL) of hiring them, therefore they would hire fewer workers. (2) when w > P x MPPL, the cost (w) of hiring additional workers is less than the benefits (P x MPPL) of hiring them, thus they would hire more workers. (3) when w < P x MPPL, the cost (w) of hiring additional workers equals the benefits (P x MPPL) of hiring them, therefore they have the right number of workers. (4) when w > P x MPPL, the cost (w) of hiring additional workers exceeds the benefits (P x MPPL) of hiring them, hence they would hire less workers.
Can someone explain/help me with best solution about problem of Economics...