By selling in larger quantities, the two can lower their average fixed costs (economies of scale), but it also means that theyre going to have to find a partner to do that because Jesse doesnt have a big enough footprint to sell that much dope. As he told Jesse, You asked me if I was in the meth business, the money business. Walter is trying to piece his life back together and believes that continuing to produce his blue meth isnt worth the amount hes giving up. Obviously Walt hands over everything he has in the final episode, something like 9 million dollars to Elliot and Gretchen. Walt was so petty for threatening Gretchen and Eliot in the last episode : ( Even in his final moments he sincerely believed his delusions about evil Gretchen cutting him from his well deserved billions of dollars. This is not something a typical family in the United States can afford. Hence, the steep cost of transportation that characterizes the methamphetamine-producing business. WebWalt gives the impression they built their fortune on his work, Gretchen and Elliot imply he did contribute significantly to getting them off the ground, which is why they keen to fund his treatment and the like. The benefits are clear, the money will cover college tuition, tutors, mortgage payments, and all future expenses. Walter rushes to the junkyard in order to make sure that recreational vehicle (RV), which he used for cooking methamphetamine and it is stored there, is destroyed. Next, we see Walter load the barrel in the back of the recently purchased vehicle. WebWalter and Skyler White attend a birthday party for their wealthy acquaintance, Elliott Schwartz. if elliot had a meth empire, wouldn't there be evidence in the form of meth? Walt was poor but the brains of the company. The Schwartzs agree, but because hell die soon, Walter has no guarantee that they will actually go through with the donation. Here, the division of labor and the comparative-advantage based specialization is what makes their enterprise successful. He had no problem stealing Walt's money while Walt was crying on the ground. The downward sloping portion of the average total cost curve is the area where the benefits of specialization outweigh diminishing returns from adding additional workers. WebI'm having trouble understanding why Walter is so averse to teaming up with Elliot in legitimate business and also why their business relationship The pair were engaged until Walt abruptly broke up with her. Gretchen But what motivated Walt to leave Gray Matter in the first place? The Real Winner In The Breaking Bad Finale: The IRS - Forbes This is a good example of a positive statement, which is a testable statement that has a right or wrong answer. If his reservation price was lower than $10,000 then he would hear producer surplus. Also, it is worth noting that such overseas expansion would not have been possible without Lydias expertise regarding global supply chains. The production facility is state of the art and includes some of the best equipment available on the market. See more: cost benefit analysis,incentives,property rights. Gale believes his importance in the process is to help people get a clean product. NOTE: The camera zooms in on WW's hand clenching as Elliott is saying he contributed nothing but the name. WebAnswer: They didnt seem like bad people, and came across pretty genuine to me. Plot But both are far too savvy not to figure out eventually that Walt was playing them with the whole "hit men will be watching" ploy. Walter tells the Schwartzs that hes hired the best hitmen that he could find and that if the money is not donated to his son shortly after his sons 18th birthday then Elliot and Gretchen will be assassinated. The two consider renting a storage unit, but eventually settle on purchasing a recreational vehicle. WebBusiness, Economics, and Finance. WebBadger and skinny Pete go to Gretchen and Elliots 2 months later and tell them the hitmen would call off the assassination if they pay the full whack. Walter As long as its that ridiculous Chili P or some other dreck but dont even think about using my formula. Jesse: Just try and stop me! While Walter is indeed the one who discovered the formula for the blue methamphetamine, he might have a hard time preventing Jesse from using the same formula to produce a similar good. Reddit, Inc. 2023. Regardless, if this is the case Walt should have been paid gratuity, yet that never took place. Vince Gilligan He decides to abandon his car, as he fears it may be a trap. Both are frustrated because they have specialized in their own part of the operation and cant control the other portions of the setup, See more: comparative advantage,division of labor,specialization. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. WebYes. WebAnswer (1 of 19): Thanks for asking. When he arrives, the junkyard owner, Old Joe, asks Walter why is he there. One can observe that some the costs such as the ongoing expense with keeping former collaborators quiet are fixed, while others, such as the cut to the dealers or the fee for the drug mules (i.e., those who transport the methamphetamine from its production to distribution location) are variable. Jesse offered Walter a way out with suitable money, but Walter explained his bitter attitude towards Gray Matter. The scenes within are particularly useful for discussing the importance of property rights delivered by a functioning legal system and the consequences brought about by the impossibility of enforcement, for instance, in the black markets for drugs. The elasticity of supply often dictates that the responsiveness of a good depends on how easily other substitutes can be acquired. Jesse cites other examples of contamination in food (like hot dogs and candy bars) where people (and the government) dont care about the quality. Walters intentions become obvious once he starts revealing that the Drug Enforcement Agency (DEA) has apprehended Jesses former business partner. Meanwhile, Walt and Skyler go to a birthday party for their old friend: Elliot Schwarz, Walt's old lab partner and a co-founder of the research firm Gray Matter Technologies. Walt See more: absolute advantage,comparative advantage,credible threat,credible threat,division of labor,gains from trade,game theory,incentives,opportunity cost,specialization,tradeoffs,ultimatum game, This clip shows Walters preference for producing superior products. The theft corresponds to popular equipment used to make meth, and the janitor (Mr. Archilleya) had a past record for possession of marijuana, had access to the school, and during a search of his vehicle, had possession of marijuana. Product differentiation and quality, customer satisfaction, monopolistic competition, and market power can be discussed using this scene. Elliott portrays a smart guy who is don't have any nuts. WebWalt's story is one of self-delusion. It I disagree completely; that was Walt's delusion. Based on the earlier exchange, Eds reservation price for each hour is above $5,000 but below $10,000. This description comes from Duncan, Muchiri, and Paraschiv (Forthcoming). Gretchen acts like stereotypical rich entitled girl. This way, those who move the drug must also guard it and enforce the property rights over it through violence. As the show progresses, for example, viewers learn that Walters product is the best in the market, highly sought after, and blue. Elliott claims that Walt's only major contribution to Gray Matter was inspiring the name of the company, while Gretchen says that whether or not Heisenberg is still out there, the man they knew as Walter White is now dead. The negotiation between Walter and Saul also reveals some information about Sauls willingness to supply, which seems to be somewhere under or at the 5% threshold. This is exactly what I was thinking. Heroes Fans Hated (& 5 Villains They Loved See more: capacity constraints,economies of scale,government regulation,incentives,inelastic,optimal output,profit,Resource market,scale of production,scarcity,supply elasticity,underground economy. WebWalt stayed silent for at least 2 decades while Elliott and Gretchen capitalized on his true genius. Who else wanted Elliot and Gretchen to Privacy Policy. The whole scene is awesome, Walts anger building up, the darkness of the scene, and the title sequence music that plays in the background while he escapes! Heres how Peter Gould explains it: "This one, we did discuss a lot. While Walt Jr. finds this crazy, Walter is willing to get rid of it even if its well below what he could get somewhere else. Economies of scale are important in the production process. Hes very clear that he wants it to be his money that goes to his children, saying to take legal fees out of his own money etc and for them to not spend a penny. Walter had made a pound of meth (16 ounces), but Jesse has only sold 1 ounce because hes selling it directly to users. Walter struck up a relationship with Gretchen when she was WebJack just killed one DEA agent, wounded another, and Walt was handcuffed and helpless. WebIt was heavily hinted when both of them talked in the restaurant, and outright confirmed by Gretchen's actress. This clip also provides a detailed account of various activities that form the underground economy and underpin the $1,392,800, methamphetamine business. In an attempt to get Walt Jr to like him again, Walter tries to buy him a used car. Webkadzier 6 yr. ago. walt and gretchan were in love and while on a trip with her and her father and brothers walt overheard a convo in which grethcan's dad insulted him. Recognizing that his dad is trying to purchase his approval, he convinces his dad to buy him a new sports car instead. WebIts likely that Walt made the company and allied with his girlfriend at the time, Gretchen and his best friend Elliot. This we knew to be fact: White co-founded Gray Matter Technologies with friend Elliott Schwartz. Gretchen and Elliot Schwartz, fresh off their Charlie Rose appearance, did not die, but Walts trickery forced them to play a role in embezzling money beyond his grave. Gretchen See more: opportunity cost,resources,scarcity,time,zero price. But in Granite State, The Schwarztes go on Charlie Rose and say that all Walt contributed was the name of the company. "Rashomon"-Style: It soon becomes clear that Walt and Gretchen remember their breakup and Walt leaving Gray Matter very differently. seems like there would be stiff competition on the streets if another product almost as goos as walt's (walt is the best) was being sold. I'm curious to see what you all think. Pretty cut and dry. Walter was making enough money for his own family, but he refused to leave his villainous lifestyle. Question about the Eliot, Gretchen and Walt feud : garykmcd WebIts likely that Walt made the company and allied with his girlfriend at the time, Gretchen and his best friend Elliot. More specifically, the video clip emphasizes Sauls perfectly inelastic supply for money-laundering services over the observed range of prices (i.e., 5% to 15%). Its time for Walter to quit so he stops by to visit Gus Fring. Walter finds a distributor to sell his meth to, but it requires that the two of them produce two pounds per week when they were previously making only one pound. 100%, they followed through. Thoughts on the relationship between Walt and Gretchen GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. Instead, he seeks help from his former business associations, Elliot and Gretchen Schwartz. A discussion about social mobility and human capital development may also originate within these scenes. The scene brings forward a discussion between Jesse and Walter. See More: barriers to entry,distribution,elasticity of demand,imperfect competition,market power,monopoly,profit maximization. For this lucky resident, it appears $10,000 was at or above his reservation price. Tuco shows up in a junkyard expecting to purchase 2 pounds of meth from Walter and Jesse, but the two of them only brought about half a pound. He suggests that he can just get another family, implying they are substitutable. It looks like Hank has finally cost Jesse in the RV and hes on the hunt to arrest him for meth production. I went back and rewatched the TV interview and want to know what everyone thinks. Walter doesnt want to contaminate the product in any way, but Jesse is confused because the customers dont care about the quality of the product. Walter threatens to inform the DEA about the methamphetamine business if Jesse chooses not to join the partnership. If it was, he would have taken Gretchen and Elliot's money for cancer and not risk his life and the life of WebIn the penultimate episode, Walt is about to surrender when he sees on TV Elliot and Gretchen dismissing Walt's contribution to Gray Matter and Heisenberg's reputation as a drug kingpin. You can see that Walt was actually considering the offer and said I have personal issues it wasnt until he mentioned the health insurance from Elliot to him that he flat out denied his offer. Walter and Jesse loved the RV even though it had, and brought them, many problems. Walt terrorizes Elliott and Gretchen. In real life the german population is like 50%, especially the nazis. At first, Walter is surprised that Jesse doesnt want to cook in the garage, but Walter is just as reluctant to cook at his house. Saul has done strictly Vet-guy work for Walt. See more: average costs,comparative advantage,division of labor,economies of scale,fixed costs,middleman,opportunity cost,production,profit,specialization,supply chain,total costs. did Walter Each person/business has a reservation price at which theyre willing to sell products or services. Breaking Bad, how will Gretchen Walter stops by to see Jesse. WebWith how Walt interacts and perceives Gretchen especially and even Elliot, I think it's a jump to just assume that Walt would've been perfectly fine with Gale. See more: absolute advantage,comparative advantage,diminishing returns,division of labor,economies of scale,inputs,labor,productivity,short tun,specialization. A subreddit for fans and critics of the hit television series Breaking Bad on AMC. Did Walter brings in $274,000 for her to get through the system, but she quickly realizes hes earning millions of dollars each year, which is far more than what she can reasonable hide in a car wash. WebThe Schwartz Residence is the new home of Elliott and Gretchen Schwartz. See more: government regulation,market power,price ceilings,quotas,rational model of crime,underground economy,unintended consequences. Actually seeing each pile of cash shrinks, as they account for the costs of the business, provides a visceral example about costs, profit, and the relationship between the two. WebWalt tells Saul he tried to do the gentlemanly thing, which I understood as not making an issue when Elliott and Gretchen started a relationship. Back in the office of Saul Goodman, Walter and Jesse try to sort out some of their recent misunderstandings. I personally would like to see this happen, since it would make both Walter White (or whatever is left of him) and Heisenberg equally pissed. Walt Walter and Jesse arent keen on this idea because it means theyd have to give up their family, and thats a cost Walter isnt willing to make, even for lots of money. Gretchen Walter is even careful to consider future inflation changes as he determines the appropriate amount to invest., See more: cost benefit analysis,discounting,Gary Becker,inflation,marginal analysis,net present value,Rational model of crime,reservation income. That being said, Elliot was an even bigger whimp than Walter White before he became Heisenberg. However, as a prospective customer for money-laundering services, Walter is well aware of his bargaining power and quickly counters Sauls offer with a 5% fee. I don't think Walt and Gretchen's breaking up was Walt's idea, and he harbored bad feelings about it afterward, Just because Hugo has markers that could potentially make him a criminal, it doesnt mean that it would cause him to be willing to steal from his employer. Gus and Walter discuss Walters decision to start cooking meth. In his mind, this makes everything hes done worth it. Beckers theory on the rational criminal suggests that criminals take the time to calculate the costs and benefits before committing their crimes. Scan this QR code to download the app now. If one or two individuals tried to run the same operation (like when it was just Jesse and Walter), they would not be able to produce as efficiently. Charlie Rose mentioned blue meth still showing up and didn't seem convinced Gray Matter was completely innocent. This clip represents a wonderful account of all the moving parts of Walters methamphetamine enterprise. t Walt Take The GreyMatter Job Offer They dont need the money Walt gives them so itd be foolish to do anything other than dispose of it to avoid questions from the police, and itll be no loss to them giving the 9 million to Walts family. Property rights and the incentives to care for his business push Old Joe to demand Walter the RV removal. This scene serves as a nice example of why firms may operate at a loss rather than shut down. Walter loves peanut butter and jelly sandwiches. Maybe Gray Matter has profited from something that is actually very harmful and Walt left because he decided to do what was right at the time (something he later regretted). Best Moments From the 'Breaking Bad' Finale See more: budget constraint,indifference curve,interdependent utility functions,preferences,tradeoffs,utility,utility maximization. Addicts will buy drugs without knowing whats in them (asymmetric information), but at least Gales product is pure. Walt and Skyler greet Elliot and his wife Gretchen, who also worked with Walt and with whom Walt was once romantically involved. Walts He also lost the support of his family, who now viewed him as a despicable monster who put his thirst for Incentives, and how individuals respond to incentives, represent another key economics concept. Hes the one that made that choice. The costs have been larger than Walter could imagine, but he believes all the benefits have outweighed the costs of his decisions. if elliot was making meth, and his product was national or international, then it wouldn't have gone unnoticed. Scan this QR code to download the app now. Elliott and Gretchen WebThen Walt says Elliot and Gretchen stole his ideas and made billions off them, calling her, "a spoiled rich girl just adding her to millions." That pettiness was one of the reasons he left Grey Matter. That, my friends, is called karma; she planted some really bad seeds. We will produce a chemically pure and stable product. For more information, please see our According to show creator Vince Gilligan and co-showrunner Peter Gould in a new interview with The Huffington Post : The real reason White lef Walt and Gretchen While pleading his case, Hank doesnt want to believe that he needs a warrant, but probable cause and the Fourth Amendment are in place to protect people and their personal property. See more: buying vs renting,capital investment,fixed costs,inputs,preferences,risk,risk averse,tradeoffs,uncertainty, Walter tracks down his former student, Jesse, with the intention of collaborating with him in the production of methamphetamine. A question about Gretchen and Elliot : r/breakingbad As Ed prepares to leave, Walter offers him $10,000 to stick around for two more hours. The purchase of the famous RV would represent a fixed cost of production for their new business venture, See more:fixed costs,fixed inputs,inputs,production. WebRe-write: Walt works there for a few weeks, finds out Skylar is the one who approached Gretchen and Elliot, quits on Grey Matter but doesn't tell Skylar. Here, Walter is encouraging some action (joining him) by issuing a threat (turning Jesse in). Hank is temporarily disabled and has been collecting rocks to pass the time. This video clip is also instructive about the price elasticity of supply. Gus wants to offer Walter 3 million dollars to keep making his blue meth for 3 more months, but even that amount isnt worth it to Walt. No adulterants. See more: inputs,Production,substitutes,supply elasticity,tradeoffs. did Walter Everyone assumes Having only one worker means that they arent able to gain from specialization. Walt did not know Gretchen was his sister until the 4th of July weekend when he went off with Gretchen and her family. In the same way, Heisenberg worked to build an empire only to have it taken away by the Nazis, who are now using his own formula, his own work, while he gets nothing. Ehrmantraut is also a german name, believe me I have German ancestory. Yes he needed Gretchen and Elliott to give his money, but it was his money, and under his terms. However, Elliot and Gretchen are billionaires. All rights reserved. Walter then started walking on his path of revenge and make sure Jacks White Supremacist gang pays for what they did to him. She responds with (slightly paraphrasing) "You abandoned me. Even for the wealthy, theres diminishing returns to acquiring more income. i recommend this peter gould interview. The scene demonstrates how businesses incur various expenses while providing instructors and students with a lively example about the different cost types. Plus a lot of characters in Albequerque are German. Gretchen doesn't give him away but his bitterness at their past relationship - personal and business - comes out. He needed others to distribute his product. Because of his familiarity, Walter suggests that the young man change the type of matches he uses if he wants to make meth. Walt has a pattern of finding some way of clashing with anyone he can't domineer. Gus is set on controlling the market for meth in the Southwest. See more: black markets,gun control,invisible hand,underground economy. This clip may also serve as a catalyst for discussing, once again, the role of institutions in shaping the behavior of economic agents and the consequences brought about by their lack of reach into black markets such as that for methamphetamine. Walter and Jesse cook, Lydia arranges and oversees the international shipments of methamphetamine, which are disguised as shipments of various chemicals between the subsidiaries of the multinational enterprise she works for, Todd coordinates the transportation operations, and Skyler is in charge of accounting and money laundering. Also, I think the viewers would love to see them burned. Reminiscing about the start of their partnership, they cannot help but wonder about sticking with the old recreational vehicle (RV) even when there was enough to replace it.

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