<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-3-chapter-02 -->

# Agricultural Market Size Threshold

## Definition

The minimum market size required to support specialized agricultural production and the division of labor in farming, which Smith argues was prevented from developing by medieval trade restrictions and market privileges that kept agricultural markets artificially small.

## Source Chapter

Book III, Chapter 2

## Context

Smith connects the size of agricultural markets to the potential for specialization and improvement, arguing that when farmers can only sell locally due to trade restrictions, they cannot achieve the economies of scale and specialization that larger integrated markets would permit.

## Economic Domain

Exchange

---
