Mr. Potato was upset after being bullied by his classmates who called him ugly. He went home and asked his mother if he was ugly, to which she affirmed. Feeling sad, Mr. Potato decided to end his life by jumping from a tree but his teddy bear came to life and told him a joke, making him laugh. The joke and humor helped Mr. Potato feel better and decide not to jump, realizing that life is happier with humor. The story emphasizes the importance of humor.