---
entity_slug: market_size_threshold
entity_type: Principle
vsm_system: S2
type_rationale: Market Size Threshold represents an abstract economic law that determines
  when specialization becomes viable across different contexts, functioning as a theoretical
  rule rather than a concrete entity or process.
vsm_rationale: This threshold operates as a coordination mechanism that determines
  when market signals can support full specialization, directly governing the anti-oscillation
  between generalist and specialist production modes.
classified_at: '2026-02-23T11:14:21.265731'
---

# Classification: Market Size Threshold

## Entity Type

Principle

## VSM System

S2

## Type Rationale

Market Size Threshold represents an abstract economic law that determines when specialization becomes viable across different contexts, functioning as a theoretical rule rather than a concrete entity or process.

## VSM Rationale

This threshold operates as a coordination mechanism that determines when market signals can support full specialization, directly governing the anti-oscillation between generalist and specialist production modes.
