Wage Rate vs. Value of Marginal Product HW HELP!?

Question

If the wage rate exceeds the value of marginal product of labor, a firm _______________.

can increase its profit by employing one more worker

can increase its profit by employing one fewer worker

is maximizing profits

suffers an economic loss

Answer 1

can increase its profit by employing one fewer worker

firms choose the number of employees such that wage = value of the marginal product of labor.  Since value of MPL gets smaller as firms hire more workers, by letting go of one worker a firm can raise value of MPL to the wage rate.