The division of labor is limited by the extent of the market, explain?

Question

can someone explain to me what exactly it was that Adam Smith meant when he penned "The division of labor is limited by the extent of the market," as without being able to find it in its original context i find it rather nonsensical?

Answer 1

it takes 8 men to do a 8 man job. with the olympics on think of it this way, in the rowing competition you could fit a boat with six men and still complete the task but you will not be able to keep up with the competition. you could also put ten men in the scull but there is only oars for eight therefore you would be pulling dead weight and not be able to keep up with the competition. the extent of the market, an eight man boat race, is limited by the division of labor, it can be accomplished with ten men or even six men but it will not matter because that would stand no chance against a boat with the eight men it is suited for and therefore be inefficient and less proffitable.