A Midsummer Night's Dream 2.1 Performance: Puck Lines 42b-58

The transcript describes Puck's mischievous antics to amuse Oberon, including impersonating a filly foal and causing chaos at a gathering by pretending to be a roasted crab. The narrative continues with a humorous tale told by an aunt, leading to laughter among the choir. The section concludes with the arrival of Oberon.

How do the characters react to the tale being told?

What does the phrase 'merrier hour was never wasted there' imply about the setting?