Mitch and Cam have promised Lily that they can adopt a cat and name it Larry. Unfortunately, when they go try to adopt a cat they realize that there are a lot of non-monetary costs involved in the cat adoption process. Cam points out that they would not have a surplus of cats if they made the process easier (or essentially lowered the price).
See more: allocation, costs, demand, excess quantity, prices, quantity demanded, surplus, transaction costs, wasted resources
Cam and Mitch are trying to get Lily into the best preschool they can, and preschool admissions are normally very competitive, but they think that being gay and having a minority child will give them a leg up in the admissions process. The market for daycare appears to be a monopolistically competitive environment in which firms differentiate their offerings to appeal to different parents.
See more: allocation, competition, demand, inefficiency, monopolistic competition, prices, product differentiation, rationing, signaling