Kramer brags to Jerry that he's taken up Karate and is dominating his dojo. Jerry discovers that Kramer is in a class of 6-year-old children. This illustrates the idea that sometimes size and scale are important. If you're the biggest kid on the block, you might have a competitive advantage.
Charlie's father gets laid off from his job because a new robot at the toothpaste factory can perform his job more cheaply and efficiently. His job has been made obsolete by technology.
Harold, a tax auditor, visits Miss Pascal at her store to audit her because she paid only 78% of her taxes for the year. She gives him a hard time and states that she intentionally did not pay taxes for spending that she does not support. Miss Pascal mentions some ways that the government spends taxes.
Stringer discusses with Mr. Lucas a company's options when it is operating in a competitive market and has an inferior product. Mr. Lucas suggests acquiring competitors or dropping the price to gain market share. He warns Stringer that the latter tactic will lead to lower product credibility and mentions the example of Worldcom.