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Q: What the factors influence the size of the market for a good?
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Why is it that market size is one of environment constraints?

The macro-environment of a business is characterized by external factors that influence business growth either positively or negatively. The size of the market in which the business operates is one of the external factors and it serves as a constraint to growth because the size of a market determines the volume of sales.. for instance, if the market size is big and growing constantly at a higher rate, then sales is expected to be big, while a small market size with low growth rate will mean a low sales.. Market size in business is used to describe "the number of potential customers." thus, the higher the market size the higher the sales and the lower the market size, the lower the sales.. that is why market size is an environmental constraint for businesses..


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