It would depend on the cost of acquiring the chemicals necessary to produce, as well as externalities. For example, in the short run you could increase your su

It would depend on the cost of acquiring the chemicals necessary to produce, as well as externalities. For example, in the short run you could increase your supply of chemicals by hijacking trucks, but that increases your economic costs substantially because of the increased risk of "heat" from law enforcement. You typically can't purchase massive quantities of the necessary chemicals easily. In the long run, you may be able to purchase in sufficient quantity that you can import entire containers from overseas, with the knowledge that some will be intercepted, and you'll incur non-negligible cost for the smuggling. Also worth noting is that the economic costs associated with law enforcement attention will tend to rise (I'd bet non-linearly) as scale increases, just look at Pablo Escobar. In any case, I'd still bet that the per unit cost of production is much lower at scale. The only way that I see that cost could be fixed, is that the economic cost of law enforcement activity exactly offsets reductions in production costs from scaling up.