Mr. White starts out their business venture by stealing chemistry supplies from the school that he works at, and takes out money from his savings to purchase a mobile home for the purpose of turning it into a mobile meth lab. I imagine that a majority of viewers realized that this is the start of the intro where they crash the Winnebago, well it was. After "supposedly" disposing of the two rival drug dealers with phosphine oxide, which was previously mentioned as being extremely toxic, and relatively easy to make when the meth cooking process is messed up. Then is a panicked rage, Walter picks up an unconscious Jessie, dawns a gas mask, and attempts to drive a toxic mobile home from what he erroneously assumes to be police cars. After crashing said mobile home, he prepares himself to have a final stand with the cops, only to realize that they firefighters responding to the wildfire caused by a discarded cigarette. After that mishap, Jessie and him have the difficult job of disposing of the two bodies. Many morbidly hilarious moments ensue in this process, and a few moments of deep reflection amidst the chaos.It turns out that Jessie is very squeamish, and Walter simply is not a violent person, which I have a problem seeing since he attempted to gas two people to death. But, I will admit that it is an entirely different matter to kill in order to save your life, versus executing an incapacitated individual.
Man, a lot has changed since the first two episodes. Now I am currently sitting at the third season episode five, ah where to begin?
After the dynamic duo took care of the dead bodies they set to work on building their empire. They had no problem with manufacturing however, they had no way of selling a large enough amount of product in order for Walter to make enough money to support his family when he is gone. Based on a tip from everyone's favorite meth buddy, Skinny Pete (which sounds like a bit of a sexual joke when they call him "Skinny P"), Jessie and Skinny Pete set off to strike a deal with Tuoco. Unfortunately, Tuoco turns out to be one brutally violent and psychotic SOB, who ends up putting Jessie in the hospital. In response to this, Walter goes to meet with Tuoco himself. During this meeting Walter uses the wonderful world of chemistry to construct an explosive that shows Tuoco that Walter is not one to be messed with. And thus, the unorthodox business venture with Tuoco has begun. The deal is that Walter and Jessie will produce 2 pounds of meth a week and will receive $75,000 dollars in return. Two pounds is then increased to four because of Walters habit of making irrational decisions; except there is a problem, they don't have the ability to collect the pseudo-ephedrine required for that amount of volume. A solution to this little snag will be to obtain methlamine which bypasses the need for pseudo-ephedrine. For Jessie and Walter to get methlamine they need to either hire a team of professional thieves to break into a chemical storage facility or being the meth cookers on a budget as they usually are, they do the job themselves. With a pair of hideous red and green ski masks, the two make off with a fifty gallon drum that they struggle to carry away (I guess they skip leg day, bad idea).
With methlamine in hand, Walter works his magic in the lab and the end result is meth, blue meth to be exact (Technically it was blue hard candy that was still in liquid form when it was poured). Now they have a way to make their product easily recognizable, so it is not only the highest quality meth, but it is also easy to tell that it is their product on site. This example of product differentiation in a monopolistically competitive market is what allows Walter to set the price up, while simultaneously reducing consumer surplus. What is strange is that he is able to continue to set his price up and increase output. Normally once a firm increases output they must lower the price to a point along to the demand curve, unless the demand curve has shifted to the right. This must be because of a change in consumer taste and preference, which is one of the only ways to make and increase of price and quantity supplied increase (By the way i have been studying Econ all day so I know I rambled a bit, and I am also guessing that most of that is wrong but I'm half asleep so give me a break)
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