It isn’t that simple because your profit upside is usually finite. Say you run a lemonade stand in a small town. Number of employees can’t really exceed some threshold set by the amount of lemonade customers a given day in that town. Even if the employee is the profit producer. It isn’t an infinite money machine and money has to be made available to seek.
Yeah that's correct, I mentioned "Of course any individual company may have other constraints that makes hiring additional people unviable". One such constraint would be the total market size.