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Market sizes have nothing to do with city populations in OOTP. They are based initially on each major league team's payroll.
So, in a fictional league, if a team is based in Sioux Falls but is loaded with excellent players, their salaries will likely be quite high and the team's market will probably be one of the larger designations.
You can set up your own market sizes if you'd like, and they will evolve moving forward, but keep in mind that they will be based largely on the team's payroll, fan loyalty, and other factors, and never on the size of the local population.
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