There is no greater capitalist organization than a government. They can, and do, limit competition and raise prices (taxes) at will with out regard to whether their customer base can pay or not.
Example - potential Cali pot growers are all complaining about the State’s pot tax and licence practices to open a grow and distribute business. The State charges 40pct tax on pot sales.
The result? Free market capitalism. The black market is under pricing and better distributing black market pot vs legalised pot. The State is not seeing the legal pot sales and tax revenues they anticipated.
I read an article some months ago that there are people in Oregon who invested heavily in growing operations only to face bankruptcy because they overestimated the market price of pot.
A bale of hay in my neck of the woods might weigh fifty pounds and cost ten bucks. That's twenty cents a pound. Even if it cost ten times as much to grow pot, that would still be just two dollars per pound. It's not a business I would get into.
They need to read the Art of the Deal. Lol.