Transcript Elementary

Elementary Production
Economics of Marijuana
A.G.
with help from
C.J. and A.K
April 14, 2005
Production of a crop - inputs
Now here's your chance to grab a piece of the good ol'
American Dream. An ideal cash cropper with white crystals
frosting not only the buds, but also the stem and beginning of
the leaves. This super Indica flowers in seven weeks and will
keep you dreaming for hours.
Flowering Time: Indoor 45 - 50 days/Outdoor Mid October
Approx Yield: 100 grams per plant/Outdoor 500 grams per plant
Height: 100 - 125 cm
USD$175 / CAD$220
An excellent hybrid between Skunk #1 and Early Pearl. Outdoor
growers are usually dissatisfied with the finishing date of the regular
Skunk strain. The Early Skunk finishes about 2 weeks earlier than
Skunk #1 due to the influence of the Early Pearl. The influence of
the latter is also noticeable in the smell and the high: sweet and
smooth. The strain combines a good yield with mold resistance.
Flowering Time: Outdoor Early October
Approx Yield: Outdoor 500 grams per plant
Height: 200 - 300 cm
USD$95 / CAD$120
http://kindseed.com/products
Question
• Early Skunk yields as much as American
Dream. Why, would you guess that it sells
for half as much?
• Why would anyone grow Early Skunk?
Production Functions
• “Marijuana plants should be planted at
least three feet apart.”
• “Getting too greedy and stacking them
too close will result in stunted plants.”
• Suppose we have a “line” that is 30 feet
long. This would suggest we could
“optimally” plant 11 plants. Why?
Production of MJ
MJ.xls
0
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5500
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6350
6700
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Mgl Prod. Average
500
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500
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50
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500
495.8
488.5
478.6
466.7
453.1
438.2
422.2
405.3
387.5
MJ Total Output
10000
Total Output
Output
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6000
Output
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0
0
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Number of Plants
Marginal and Average Product
600
Output in grams
Plants
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500
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Mgl Prod.
300
Average
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100
0
0
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Number of Plants
15
20