In 2009, Oakland (CA) voters passed a measure to legalize and tax medical Cannabis.

In 2009, Oakland (CA) voters passed a measure to legalize and tax medical Cannabis. In 2010, Oakland's City Council adopted regulations permitting marijuana farms of unrestricted scale (including large-scale industrial, eg 100k ft2: the size of 2 football fields) but requiring a fixed fee of $211k per year. Small farmers complained bitterly. Under what conditions would scale economies drive small farmers out of business?