---
entity_slug: domestic_market_size_effects
entity_type: Relation
vsm_system: S4
type_rationale: This entity represents a structural dependency between market size
  and economic outcomes (efficiency, specialization, division of labor), functioning
  as a causal mechanism that connects market scale to productive capabilities.
vsm_rationale: This belongs to S4 Intelligence because it involves analyzing how environmental
  factors (market size) affect the economic system's adaptive capacity and efficiency,
  requiring scanning and understanding of the relationship between market conditions
  and organizational capabilities.
classified_at: '2026-02-23T10:58:30.225941'
---

# Classification: Domestic Market Size Effects

## Entity Type

Relation

## VSM System

S4

## Type Rationale

This entity represents a structural dependency between market size and economic outcomes (efficiency, specialization, division of labor), functioning as a causal mechanism that connects market scale to productive capabilities.

## VSM Rationale

This belongs to S4 Intelligence because it involves analyzing how environmental factors (market size) affect the economic system's adaptive capacity and efficiency, requiring scanning and understanding of the relationship between market conditions and organizational capabilities.
