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5) "While more than half of U.S. states permit medical use, transporting cannabis acrossstate lines remains a federal crime, making each state a market unto itself." Discuss howdecriminalization of the

recreational use of cannabis in more states, and transportingcannabis across state lines (i.e. integrating the into one large market) likely wou ldchange the competition in both the retail and wholesale markets. Discuss the likelyeffects on both the number of firms and prices both at the retail and wholesale market.

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