# Market Size Economies

## Definition

The economic benefits that arise from larger markets, including the ability to support full-time specialists, achieve greater division of labour, and develop more complex economic activities. Market size economies enable productivity gains that are impossible in smaller markets.

## Source Chapter

Book I, Chapter 3

## Context

Smith demonstrates market size economies through examples showing how different market sizes support different degrees of specialisation: from subsistence farmers who must do everything themselves, to artisans who can specialise fully in great towns where market demand supports their exclusive focus.

## Economic Domain

Production

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