Ron is sad that JJ’s diner is closing even though it is a sign that he is a failure as a businessman, or the market has determined he is not adding enough value.
See more: competition, free entry and exit, invisible hand, profit maximization
The Pawnee Video Dome is failing and going out of business. Leslie is trying to find tax breaks to keep him afloat, but Ron says the market is signaling that the company is not providing enough value to consumers and deserves to fail. If companies provide a social good (like intellectual conversations) then governments may step in and subsidize the production of the service.
See more: bailouts, competition, growth, invisible hand, market exit in LR, positive externalities, product differentiation, role of government, social benefits, subsidies, technology
Ann runs into Donna at a single’s event but is quickly sent away because she represents competition in “the jungle.” Dating markets work best whenever they are “thick,” but if there aren’t many available mates then it can be hard to match up.
See more: behavioral, common resources, competition, coordiantion problem, dating markets, game theory, zero-sum game
Ron and Leslie meet for lunch to settle a bet, but not before Ron extolls the virtues of capitalism and competition in the free market. Leslie, of course, disagrees on the role of government because she recognizes that not all services can be provided private enterprise.
See more: capitalism, competition, externalities, free market, government, public economics, public goods, role of government