Liu's Potato Chips Is a Perfectly Competitive Firm Currently Employing

Multiple Choice

Liu's Potato Chips is a perfectly competitive firm currently employing 30 workers. The marginal revenue product of the 30th worker is $7.00 per hour. The wage rate is $8.00 per hour. To increase profits, this firm should

A) decrease employment until the MRP of labor equals $8.00.
B) increase employment until the MRP of labor equals $8.00.
C) continue hiring 30 workers because the firm earns a surplus of $1.00 on each worker hired.
D) increase the price of potato chips so that the marginal revenue product increases to $8.00 per hour.