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Economics glossary · Firms and competition

Size of the market

What size of the market means in economics, as one of four constraints on growth, with an example and a question to test yourself.

Definition
Size of the market
The size of the market limits growth when there are too few buyers to take a larger firm's extra output at a profitable price.
Example

Can you think of an example of size of the market?

Test yourself

Can you name the four things that can stop a firm growing, however much it wants to?

Learn it properly: the module

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