It is Phil’s birthday and also the day the iPad is being released. Phil is willing to spend his birthday waiting in line to be sure he gets the new iPad, but Claire offers to do it for his birthday but instead of getting there early she falls asleep on the couch. When she finally gets to the store, they are all out, and Phil ends up wishing he had handled it himself.
Cam and Mitchell own a duplex. They usually rent the upstairs unit but Cam’s sister, Pam, needed a place to stay when she was pregnant so he offered it to her (rent free). This has put a bit of a strain on their relationship because she’s stayed longer than planned and they need the money from the rental.
Claire surprises Phil by purchasing the magic shop of his dreams. The previous owner sold it for very cheap, but then Claire starts to wonder if the magician had information she was unaware of. Despite the concern, this is a unique opportunity for Phil to become an entrepreneur.
Claire and Phil go to a magic shop and talk business with the legendary Mister Ekshun. The magician laments that he can’t be at the shop everyday because he’s booking “road jobs” which we should infer have a higher payoff than the shop’s profits. Phil is curious about how a magic trick works, but they need to make sure Claire (a non-magic person) isn’t able to hear the trick. Phil learns that he had an opportunity to become a magician on a cruise ship earlier in life, but Claire had never told him about the call because of how busy their lives had been.
Lily has the tough teacher but Cam and Mitch just learned of an opening in the nice teacher’s class. In this scene, they approach Ms. Plank about transferring Lily into Ms. Sparrow’s classroom. Education is one of the markets where consumers have little choice. Some argue that this creates inefficiencies in the market. Others argue that education consumers may not have enough information to make optimal decisions so giving consumers more choice would not necessarily lead to an improvement in efficiency. This sort of problem is discussed at many levels in education – from school choice to book choice.
Jay has a great new invention that he believes will revolutionize the closet industry. It’s a sock dispenser. In competitive industries, product differentiation can lead to short term profits – especially for early adopters. Why is Jay concerned that his son, Manny, has a new friend who has seen this idea?
Phil helped a friend make an infomercial and then his friend served as the videographer for Mitchel and Cam’s wedding. This is an example of a double coincidence of needs and allowed for barter.
Alex is graduating from high school soon so Phil, Claire and the kids are visiting Cal Tech. Claire thinks Cal Tech is the perfect place for Alex but she’ll find out soon that she and Alex have different preferences. College is one of the ways that we build human capital. As we learn more things, we become more productive and our labor is more valuable. Alex is already really bright and loves academics so college is a good fit to set her up for doing impressive things in the future.
Claire wants a great school that’s close. Alex wants a great school that’s far away. We also learn that Cal Tech has 5 Nobel Laureates on staff, suggesting that Cal Tech itself has a lot of human capital, making it a highly productive college.
Alex learns why Cal Tech might be a better choice for her than an East Coast school. What is more important: the quality of the program or proximity to home? Choices are tough and everything has a cost. Here’s Alex’s current dilemma: stay close to home and attend the best program in the country OR go to a college on the east coast with a weaker program.
Cameron fills in as the drummer in Dylan’s band, and after their first song, performs an impromptu drum solo. Mitchell originally found him impressive, but his drum solo went on so long that he experienced diminishing marginal returns.
Mitchell complains to Jay about Cam being too nice, and Jay complains to Mitchell about Gloria not liking his dog butler. Jay notes that they are both with people who are very different and that maybe that makes their relationships better.