Manny puts up a fiber optic Christmas Tree, because it is better for the environment, but Jay thinks it is ugly and does not want it in his house. This clip highlights both positive externalities of the fiber optic tree (environmental benefits) and negative externalities of the tree (Jay’s psychic costs). Jay and Manny have been trying to cut down their own Christmas tree for hours, but it is not budging and keeps ruining their tools. Jay has finally had enough and says Pritchetts know when to give up. All their previous effort is a sunk cost, and it would take too much effort relative to the reward of a half burned tree to keep going.