1. (a) Your uncle opens a sandwich shop that employs 7 people. The employees are paid $7 per hour and sandwich sells for $6. If your uncle is maximizing his profit, what is the value of the marginal product of this last worker he hired? What is that worker's marginal product?

(b) Assume Pencil & Pencil Company sells pencils in perfectly competitive market and hires workers in perfectly competitive labor market. Assume market wage rate is $150 per day. At the profit-maximizing level of output, the marginal product of last worker hired is 30 boxes of pencils per day. Calculate the price of a box of pencils.