710 B
710 B
Market Extent Measurement
Definition
The various ways to quantify the size and reach of markets, including geographical distance, population size, transportation costs, and the volume of trade that can be supported. Market extent measurement helps determine the potential for division of labour and economic specialisation.
Source Chapter
Book I, Chapter 3
Context
Smith provides implicit market extent measurements through his comparisons: the difference between what can be carried by water versus land, the distance between specialists in remote areas versus populated regions, and the population required to support different types of economic activity.
Economic Domain
Exchange