The mrp=mrc rule tells us that in pure competition a firm will hire workers up to the point where the marginal revenue product is equal to the wages of workers.
A pure competition is an industry that is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into a pure competitive industry.
In the long run, firms in a pure competition earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
In a pure competition, profit is maximised where marginal revenue product equal to the wages of labor. Thus, a rational producer will produce up to the point where mrp = mrc
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