factor market

Factor Market

The market for the means of production. That is, the factor market is the buying and selling of land, labor and capital, as well as raw materials and entrepreneurship. The most important component of the factor market is labor. See also: Factor Income.

factor market

a market in which FACTORS OF PRODUCTION are bought and sold and in which the prices of labour and other FACTOR INPUTS are determined by the interplay of demand and supply forces. See LABOUR MARKET, CAPITAL MARKET, COMMODITY MARKET, DERIVED DEMAND, MARGINAL PHYSICAL PRODUCT, MARGINAL REVENUE PRODUCT, PRICE SYSTEM. factors of production the resources that are used by firms as FACTOR INPUTS in producing a good or service. There are three main groups of factor inputs: NATURAL RESOURCES, LABOUR and CAPITAL.

Factors of production can be combined together in different proportions to produce a given output (see PRODUCTION FUNCTION); it is assumed in the THEORY OF THE FIRM that firms will select that combination of inputs for any given level of output that minimizes the cost of producing that output (see COST FUNCTION). See ENTREPRENEUR, MOBILITY.

References in periodicals archive ?
This intense competition over inputs of production and services is called factor market rivalry.
In 2014, the recombinant factor VIII accounted for the largest share of the global recombinant coagulation factor market.
If the clinical trial is successful, the company plans to expand the use of HemaXellerate to other conditions associated with bone marrow dysfunction, with the overall goal of entering the hematopoietic growth factor market.
The report stated that the automaker will factor market trends and cost-cutting efforts into the price of the fuel cell version of the Lexus LS.
If the clinical trial is successful, the company plans to expand use of HemaXellerate to other conditions associated with bone marrow dysfunction, with the overall goal of entering the hematopoietic growth factor market.
Subjects include: competitor analysis and inter-firm rivalry; a retrospective of interdependency, competition, and industry dynamics; hyper-competition in a multimarket environment; factor market rivalry; non-market players' disruptive campaigns against firms; market niche entry decisions; a model of market disruption, and the business model as a growing domain of scholarly inquiry.
The parts division comprises three companies supplying components to the motor factor market.
Additionally AirTran said that, during the first quarter, it recorded an all-time record number of passenger enplanements both on its system and out of Milwaukee and the highest load factor market in its system during the first quarter was the Milwaukee-Fort Myers market, with a 93.
As a result, an important channel of the effects of trade tax changes on equilibrium has been largely ignored, that being the effect of trade tax changes on factor market equilibrium, and the concomitant effects on equilibrium in the small open economy.
However, the seemingly well agreed upon notion of the conventional "demand curve" becomes rather muddy when it comes to the discussion of the factor market.
It is evident then, that the shape of the MRP curve in the factor market for most empirically relevant production functions should be drawn convex to the origin in order to be logically consistent.
In the analysis above we assumed a perfect competitive international trade model without any kind of distortions in the product and/or factor market.