# Market Size Threshold

## Definition

The minimum size of a market required to support full specialisation in a particular trade or craft. Below this threshold, artisans must perform multiple tasks or remain part-time specialists, while above it they can focus exclusively on their specialised work.

## Source Chapter

Book I, Chapter 3

## Context

Smith illustrates market size thresholds through examples: a village is "by much too narrow a sphere" for a porter, an ordinary market-town is "scarce large enough to afford him constant occupation," while only a great town provides sufficient demand for full-time specialisation.

## Economic Domain

Exchange

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