Quote:
Originally Posted by Beemnseven
If you're as versed in economics as you say, you of all people should realize that consumers will seek out the least expensive route for the products they want. That's where competition comes in. If Big Business decides to enter into this market, they're going to have to compete with the people who just as easily grow it in their living room. In fact, I would submit that not as many "Big Business" entities would even bother to compete when the cards are stacked against them like that.
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You're right in one sense but you're also forgetting about brand recognition. If Philip Morris starts package and distribute marijuana and spends its resources on advertising then people will generally tend to buy their product over the unknown dude with the cheap packaging and inferior looking product image. You can use tv's, shoes, over-the-conter drugs and just about any other product as an example. In the end Big Business wins out just about everytime. If the little guy is showing impressive sales success with a superior product then Big Business simply "makes him an offer he can't refuse" and buys the product. A good example of that would be Cisco Systems.