The setting of penalties for drug possession at levels appropriate to the seriousness of the crime can be expressed in economic terms as attempting to ensure that

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Setting penalties for drug possession at appropriate levels means that the marginal cost of drug possession (i.e., the cost of punishment) is equal to the marginal benefit of drug possession (i.e., the perceived benefits to the individual using drugs). This ensures that the punishment for drug possession is neither too severe nor too lenient, and serves as a deterrent to potential drug users.

The Setting of Penalties for Drug Possession at Levels Appropriate