The most common application of Morton's theorem occurs when one player holds the best hand, but there are two or more opponents on draws.
Suppose in limit hold'em a player named Arnold holds A♦K♣ and the flop is K♠9♥3♥, giving him top pair with best kicker.
The turn card is an apparent blank (for example 6♦) and the pot size at this point is P, expressed in big bets.
When Arnold bets the turn, Brenda, holding the flush draw, is sure to call and is almost certainly getting the correct pot odds to do so.
(Here, as in arguments involving the fundamental theorem, we assume that each player has complete information of their opponents' cards.)
In essence, in the above example, when Charles calls in the "paradoxical region", he is paying too high a price for his weak draw, but Arnold is no longer the sole benefactor of that high price — Brenda is now taking Charles' money those times when Brenda makes her flush draw.
In other words, if Brenda and Charles were to meet in the parking lot after the game and split their profits, they would have been colluding against Arnold.