Sophie illustrates the six basic simple machines that exist and explains how they are useful in our everyday lives. She defines force and work and mentions that simple machines reduce the amount of work required for a task.
Kramer, at the beach in the Hamptons with friends, finds a rope dangling into the water and pulls up a pot full of lobsters. He serves them for dinner that night, and his host says that he's poached them from a commercial lobsterman. Kramer says, "What's the problem? There's plenty for everyone." This highlights the wedge between individual incentives and optimal social outcomes.