Sam has a job as a driver working for a shuttle service company called W. He drives people from the University to the Airport and back. Sam's position requires him to work 6 hours per day and it pays him $10 per hour. The company decides to change how it operates and becomes more like Uber and Lyft; it now calls itself W2. Now Sam chooses how many hours he wants to work each day and the company pays him a fixed amount for each drive. Each drive takes Sam about 1 hour. The company W2 now pays Sam $15 per drive. Sam decides to work about 4 hours per day for W2.

1. Sam is reading Marx one afternoon and he starts to think about his job. Wait, he says, I made $60 per week when I worked 5 hours per day for W and now I also make $60 per week working for W2, but I work only 4 hours a day for W2. That means W was taking advantage of me! W was paying me for only 4 of the 5 hours I worked every day. W was essentially stealing an hour of pay from me! Offer an analysis of Sam's reasoning. Do you think he is right? Explain.

2. Sofia hears Sam's story, and does some calculations with data she has on transportation costs. Sofia uses the best available data to correctly calculate the true value of giving a ride from the University to the Airport. She finds that the true value is $20 per ride. Recall that this ride takes about 1 hour. So Sofia says, Sam, by your reasoning, anything less than $20 per hour is stealing!. How do you think Sam should respond? Explain