Teaching economics using clips from the AMC hit show, Breaking Bad.
Gus and Walter discuss Walter’s decision to start cooking meth. Walt has debated the costs and benefits of his decisions throughout the show’s five seasons. Gus has an incentive to make sure Walter produces for him, so he tries to emphasize the importance of the benefits Walt has received and echoes how large those benefits are relative to the costs.
See more: tradeoffs, cost benefit analysis, psychic costs, subjective costs, decision making, interdependent utility functions
The benefit ($1.5 million) relative to the cost (time and effort) of cooking meth is different for Walter and Jesse. The benefits are obviously lower than the costs in Jesse case but not for Walter; as he seems happy with trading his time and effort for the cash. Even with clear and predictable benefits, people’s own subjective costs of their time can still make them disagree on the cost benefit analysis.
See more: cost benefit analysis, psychic costs, scarcity, subjective costs, value of time
Walt weighs the costs and benefits of his decision to start producing meth. The benefits are clear, the money will cover college tuition, tutors, mortgage payments, and all future expenses. The costs have been larger than Walter could imagine, but he believes all the benefits have outweighed the costs of his decisions.
See more: tradeoffs, cost benefit analysis, psychic costs, subjective costs, decision making, interdependent utility functions
Is it worth Skyler’s trouble to turn Walt in for making meth? She discusses this decision with her lawyer, but can’t seem to convince herself to go through the process. In this scene, Skyler is audibly weighing the costs and benefits of her decision. The lawyer seems to think that the benefits of turning her husband in outweigh the costs, but Skyler decides otherwise
See more: tradeoffs, cost benefit analysis, psychic costs, subjective costs, decision making, interdependent utility functions
Tuco is getting worried and suggests that they all move to Mexico so that the government will stop tracking them. Walter and Jesse aren’t keen on this idea because it means they’d have to give up their family, and that’s a cost Walter isn’t willing to make, even for lots of money. The whole reason he started making meth was to support his family, but Tuco doesn’t seem to understand the issue. He suggests that he can just get another family, implying they are substitutable.
See more: cost benefit analysis, immigration, migration, opportunity cost, psychic costs, substitutes
The Economics of Breaking Bad 