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.
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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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
CGJE is an important strategic project established by the Chinese government in the free trade zone to improve the gemstone factor market and aim to promote the rapid development of China's gem and jewellery industry.
CGJE is an important strategic project established by the Chinese government to improve the gemstone factor market and also promote the rapid development of China's gem and jewellery industry.
It forms the backbone of the urban economy being a fixed factor market; hence an efficient real estate market is most important for a well-functioning urban environment.
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Vernon Henderson, London School of Economics; Dongling Su, Boston University; Qinghua Zhang, Peking University; and Siqi Zheng, MIT, "Local Factor Market Distortions in China"
1 Hypothetical factor market in the Heckscher-Ohlin model where k is the aggregate relative supply of capital, RD is the aggregate relative demand for capital, and r is the given rental rate.
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. The large share of this segment can be attributed to increasing number of hemophilia A patients and rising prophylaxis treatment.
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.