# Market-Based Productivity Limits

## Definition

The constraints on productivity and economic output that result from limited market access, preventing full specialisation and the benefits of division of labour. Market-based productivity limits explain why some regions cannot achieve the same levels of economic development as others.

## Source Chapter

Book I, Chapter 3

## Context

Smith shows how market-based productivity limits operate: in remote areas, farmers must be their own butchers, bakers, and brewers; artisans cannot specialise fully; and even simple trades like nail-making cannot support full-time specialists, limiting overall productivity.

## Economic Domain

Production

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