Impact of Wage Increase on Labor Employment

Consider a firm operating in a perfectly competitive market that produces a single good. The firm's production function is characterized by diminishing marginal returns, meaning that as the firm increases the quantity of labor employed, each additional unit of labor contributes less to output than the previous unit. The firm currently operates where its marginal cost (MC) equals its marginal revenue (MR), which is also equal to the market price of the good.

Given this scenario, if the firm experiences an increase in the wage rate for labor, what will be the immediate impact on the firm's decision regarding production levels?