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# Retail Trade

## Definition

The sale of goods in small quantities directly to consumers, which Smith notes typically offers higher apparent profits than wholesale trade due to the additional labour and skill required, though much of this apparent profit represents disguised wages.

## Source Chapter

Book I, Chapter 10

## Context

Smith analyses retail trade to demonstrate how apparent profit differentials often reflect differences in labour rather than capital returns. He argues that the higher apparent profits of retail merchants largely compensate for the additional skill, effort, and risk involved in direct consumer transactions.

## Economic Domain

Exchange

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