# Market-Town Economy

## Definition

The economic organisation of small urban centres that provide limited but essential market access for surrounding rural areas. Market towns enable a degree of specialisation beyond what is possible in isolated villages, though they cannot support the full division of labour possible in larger cities.

## Source Chapter

Book I, Chapter 3

## Context

Smith uses the example of a porter who can find employment and subsistence only in a great town, not in a village or even an ordinary market-town. This illustrates how different sizes of markets support different degrees of specialisation and division of labour.

## Economic Domain

Exchange

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