Running head: ECON DISCUSSION BOARD THREE 1

Econ Discussion Board Three

Name

Institutional Affiliation
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Econ Discussion Board Three

The legalization of Marijuana in Oregon State increased the demand and supply of the

drug. However, increased the number of suppliers reduced the marijuana prices. Price stagnation

forced many dealers to seek additional capital for expansion. Large retailers such as Astoria and

Mr. Nice Guy have collaborated to increase their purchasing power (Associated Press, 2018).

This move threatens the existence of small retailers who cannot access capital. Therefore,

mergers and acquisitions among large firms will remove small retailers from the marijuana

market.

The article addresses the issue of demand and supply. It also captures the concept of

mergers to control the market. For example, the prices of marijuana dropped after the

legalization due to increased amounts. Besides, increased consumption resulted from low prices.

Therefore, the market remained saturated with many sellers and buyers. In this case, retailers

merge to access additional capital and capture a significant market share.

Furthermore, many marijuana retailers allows consumers to access drugs at low prices.

Besides, flourishing businesses improve the economic growth of Oregon State. However, the

state should control the consumption of marijuana through strict controls. Marijuana has severe

medical outcomes when excessively consumed (WebMD, 2019). Thus, the state should control

the business through limited licensing. Although mergers support business prosperity, the state

should manage it to avoid monopoly. Alternatively, retailers should seek additional income to

purchase marijuana in bulk.

Christianity prohibits drug consumption. It also supports equality among businesses.

Thus, Christianity supports the issuance of licenses to all retailers without discrimination.

Besides, the state should control the mergers, particularly from foreign companies, to safeguard
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small retailers. Christianity argues that businesses should be given equal opportunities to operate.

Thus, the act of removing small retailers through mergers is immoral.

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References

Associated Press. (2018). Some Oregon pot stores consolidating to weather weak markets.

Retrieved from https://www.columbian.com/news/2018/nov/18/some-oregon-pot-stores-

consolidating-to-weather-weak-market/

WebMD. (2019). How Pot Affects Your Mind and Body. Retrieved from

https://www.webmd.com/mental-health/addiction/marijuana-use-and-its-effects#1