Agree with your take on the economics of this. It seems very poorly though out by the government (and by the pot companies, btw). Given the ease with which it is produced, and the breadth and depth of the existing market, I don't see how - once legalized - the market won't be quickly saturated with grey-market product at very low prices. The government has a poor record of enforcing the existing law, but somehow we have to believe it can channel the public to a limited number of "legal" suppliers at "legal" stores and "legal" prices that guarantee fat profits. Good luck with that. On the contrary, the outcome seems to almost certainly be a true market with a vast number of suppliers and consumers bidding the price down to something close to the price of productions.