The Division of Labor is Limited by the Extent of the Market
@article{Stigler1951TheDO,
title={The Division of Labor is Limited by the Extent of the Market},
author={George Joseph Stigler},
journal={Journal of Political Economy},
year={1951},
volume={59},
pages={185 - 193}
}ECONOMISTS have long labored with the rate of operation of firm and industry, but they have generally treated as a (technological?) datum the problem of what the firm does-what governs its range of activities or functions. It is the central thesis of this paper that the theorem of Adam Smith which has been appropriated as a title is the core of a theory of the functions of firm and industry, and a good deal more besides. I shall (i) make some brief historical remarks on the theorem, (2) sketch…
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