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# Market Extent Advantageousness

## Definition

The economic principle that larger markets provide greater advantages to a greater number of people by enabling more extensive division of labour and specialization. The size of the market determines the extent of economic development possible, with larger markets supporting more complex manufacturing and greater productivity improvements.

## Source Chapter

Book III, Chapter 1

## Context

Smith argues this principle explains why towns with larger populations and revenues create more extensive markets that benefit rural producers, demonstrating how market size directly influences the division of labour and economic productivity.

## Economic Domain

Exchange

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