Mike is sent to do some snooping, but he’s going undercover as a repairman that’s been hired. The customer is averse to electricity and had requested that no power tools be used. Mike knows this, but needs the customer out of the area so that he can snap some pictures. He brings power tools to ensure that the customer gives him some privacy. From an economics standpoint, Mike makes a compelling case for power tools as it relates to productivity.
He could make the repairs things the old-fashioned way: “going at it like Fred Flinstone.” The tools, as Mike explains, helps turn a two-day job into a one day job. Capital investments and technology helps producers lower the cost of producing items. From a PPF standpoint, it allows the curve to shift outward and producers to be able to produce more stuff given a fixed amount of time.
Jesse and Walter debate on the best way to start the business. At first, Walter is surprised that Jesse doesn’t want to cook in the garage, but Walter is just as reluctant to cook at his house. The two consider renting a storage unit, but eventually settle on purchasing a recreational vehicle. When starting a business, companies must decide whether to start by renting property, which may have lower costs initially or building and owning their own property.
There are tradeoffs to the two, and this situation is explored often in the decision for young adults to continue renting or purchasing their own home. The clip also serves as a good introduction to risk and uncertainty. Although it would be cheaper to begin production in their own homes, it is also VERY risky. Safe options often mean spending more money upfront.