[Ken H]

Medical marijuana is doing a booming business. For example, CA collects around $100M/yr in revenues from $1B in sales. People can grow their own, but most choose not to. Instead, they pay $300/ounce and up at dispensaries.

The same market forces are at work for both medical mj and recreational mj.

[Sherman Logan]

Right, because the market is still illegal or semi-legal and thus very high margin.

Once it is fully legal the supply will expand tremendously and the price will drop like a rock. It’s not like there are any huge intrinsic barriers to entry. This is Adam Smith 101.