In this question, you will demonstrate your understanding of how specialization affects the efficiency of markets, and what role illegality has in specialization

Based on Reuter's organization of illegal markets, and the ethnographic evidence in Venkatesh, explain the factors that determine how much an illegal marijuana entrepreneur will produce. What are the components of the total cost that illegal entrepreneurs face? For this question, assume that the entrepreneur sells directly to the final consumer.

How does the decriminalization of recreational marijuana affect these factors and costs?

Based on class reading, who is likely to choose to be an illegal marijuana entrepreneur? How does this decision change when the market is decriminalized? What implications does this change in who sells marijuana have for total market supply?