Final answer:
In a cost minimization problem, the monopsonist's marginal cost of labor is the additional cost when hiring one additional worker. The profit-maximizing level of employment and wage depend on the market wage and the marginal revenue product. In a leveling strategy, the firm maintains a consistent level of employment by adjusting wages or working hours.
Step-by-step explanation:
In a cost minimization problem, a monopsonist's marginal cost of labor at each level of employment is typically represented by the additional cost incurred when hiring one additional worker. It is the change in total cost divided by the change in the quantity of labor employed. The profit-maximizing level of employment and wage in a chase strategy is determined by hiring workers up to the point where the market wage equals the marginal revenue product. This occurs when the additional output produced by an additional worker is equal to the additional revenue generated by that worker.On the other hand, in a leveling strategy, the firm aims to maintain a consistent level of employment over time. This can be achieved by adjusting wages or working hours to match the available work. The wage is set at a level that is sufficient to attract and retain the desired number of employees.