Claire’s favorite holiday is Halloween, but last year she may have went a little overboard to the point that the homeowners association forbid the Dunphey’s from doing particular things this Halloween. Claire’s goal is each Halloween is to produce a scary experience for trick-or-treaters visiting, but even Phil thinks she may have gone too far investing in professional grade makeup. He suggests that she could be twice as scary without wearing any makeup at all.
Another way to view this clip is through the impact of private benefits and social costs. Claire spends a lot of money each year on Halloween decorations, but her private benefits may not exceed the social costs imposed on neighbors (at least according to the HOA). The social costs of her decisions include someone wetting themselves and someone having a heart attack. While Claire may factor these into her investment decision, the HOA determined that the social costs outweigh the social benefits and has opted for a command-and-control approach to Halloween decorations at the Dunphy house.
See more: command and control, decreasing returns, diminishing marginal returns, government regulation, marginal utility, negative externalities, negative returns, role of government, utility
Luke is finally tall enough to go on the rollercoasters and Disneyland, but Phil may be at the age where he can’t handle that pressure. The self-proclaimed “King of Rollercoasters” visibly diminishes as Luke seems to be unfazed by the G-force. While each ride adds a bit of additional joy to Phil’s overall utility, the marginal cost is clearly increasing as he continues to ride each ride. It’s not long before Phil’s marginal cost outweighs the marginal benefit of one more ride.
See more: decreasing returns, diminishing marginal returns, increasing marginal cost, marginal utility, marginal benefit, marginal cost, negative returns, utility, utility maximization
Dylan’s band is in need of a drummer, and Cam steps up to fulfill that role. Both Mitch and Haley show up to support their boyfriends, but something unexpected happens after the first song. Cam is in the groove and decides to perform an impromptu drum solo. Mitch originally found his solo impressive, but it ended up going on so long that he experienced diminishing marginal returns. In the beginning, each additional batch of time added to Mitch’s utility, but it wasn’t as impressive as the first unit of time, and eventually was more embarrassing than it needed to be.
See more: diminishing marginal returns, self interest, utility
Cam and Mitch have been married 3 months, but it seems like their honeymoon will never end. Cam continues to give Mitchell flowers even though he clearly doesn’t enjoy them as much as he used to. He may have loved the first bouquet, but eventually he may start to hate them.
See more: diminishing marginal returns, gift giving, inefficiency, preferences, rationality, utility