The Parks Department is trying to determine where to eat and Donna suggests sushi. Andy initially declines because he claims that he is allergic, but it turns out he just thinks he’s allergic. Every time he eats 80 pieces of sushi he gets sick. He probably isn’t allergic, but instead is experiencing decreasing returns (negative marginal returns).
Tom incentives the department to come to his club and try his newest drink by threatening to place them on his “done-zo” list. The Parks Department decides to go to the Snake Hole Lounge to try Tom’s new drink, but instead they all have a bit too much and go through the next day feeling terrible. One of the other issues shown in this video is diminishing marginal utility. As the night goes on, each member of the group gets a bit happier, but they eventually peak and see negative returns the next morning.
See more: decreasing utility, diminishing returns, externalities, health economics, negative externalities, negative utility, private benefits, private costs, social benefits, social costs, unintended consequences, utility maximization