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- Factor_market abstract "In economics, a factor market refers to markets where services of the factors of production (not the actual factors of production) are bought and sold, such as the labor markets, the capital market, the market for raw materials, and the market for management or entrepreneurial resources.Firms buy productive resources in return for making factor payments at factor prices. The interaction between product and factor markets involves the principle of derived demand. Derived demand refers to the demand for productive resources, which is derived from the demand for final goods and services or output. For example, if consumer demand for new cars rises, producers will respond by increasing their demand for the productive inputs or resources used to produce new cars.Production is the transformation of inputs into final products. Firms obtain the inputs or factors of production in the factors markets. The goods are sold in the products markets. In most respects these markets are the same. Price is determined by the interaction of supply and demand; firms attempt to maximize profits, and factors can influence and change the equilibrium price and quantities bought and sold, and the laws of supply and demand hold. Markets price and can "purchase" as many inputs as they need at the market rate. Because labor is the most important factor of production, this article will focus on the competitive labor market, although the analysis applies to all competitive factor markets.The existence of factor markets for the allocation of the factors of production, particularly for capital goods, is one of the defining characteristics of a market economy. Traditional models of socialism were characterized by the substitution of factor markets for some kind of economic planning, under the assumption that market exchanges would be made redundant within the production process if capital goods were owned by a single entity representing society.".
- Factor_market wikiPageID "21472509".
- Factor_market wikiPageLength "12065".
- Factor_market wikiPageOutDegree "20".
- Factor_market wikiPageRevisionID "681649190".
- Factor_market wikiPageWikiLink Business_entity.
- Factor_market wikiPageWikiLink Capital_good.
- Factor_market wikiPageWikiLink Capital_market.
- Factor_market wikiPageWikiLink Category:Economics.
- Factor_market wikiPageWikiLink Derived_demand.
- Factor_market wikiPageWikiLink Economic_equilibrium.
- Factor_market wikiPageWikiLink Economic_planning.
- Factor_market wikiPageWikiLink Economics.
- Factor_market wikiPageWikiLink Equilibrium_price.
- Factor_market wikiPageWikiLink Factors_of_production.
- Factor_market wikiPageWikiLink Financial_market.
- Factor_market wikiPageWikiLink Legal_personality.
- Factor_market wikiPageWikiLink Market_economy.
- Factor_market wikiPageWikiLink Market_rate.
- Factor_market wikiPageWikiLink Monopoly.
- Factor_market wikiPageWikiLink Price.
- Factor_market wikiPageWikiLink Product_market.
- Factor_market wikiPageWikiLink Production_(economics).
- Factor_market wikiPageWikiLink Social_ownership.
- Factor_market wikiPageWikiLink Socialism.
- Factor_market wikiPageWikiLink Socialization_(economics).
- Factor_market wikiPageWikiLink Supply_and_demand.
- Factor_market wikiPageWikiLinkText "Factor market".
- Factor_market wikiPageWikiLinkText "factor market".
- Factor_market wikiPageWikiLinkText "factor markets".
- Factor_market hasPhotoCollection Factor_market.
- Factor_market wikiPageUsesTemplate Template:Citation_needed.
- Factor_market wikiPageUsesTemplate Template:Economics_sidebar.
- Factor_market wikiPageUsesTemplate Template:Portal.
- Factor_market wikiPageUsesTemplate Template:Refbegin.
- Factor_market wikiPageUsesTemplate Template:Refend.
- Factor_market wikiPageUsesTemplate Template:Reflist.
- Factor_market subject Category:Economics.
- Factor_market comment "In economics, a factor market refers to markets where services of the factors of production (not the actual factors of production) are bought and sold, such as the labor markets, the capital market, the market for raw materials, and the market for management or entrepreneurial resources.Firms buy productive resources in return for making factor payments at factor prices. The interaction between product and factor markets involves the principle of derived demand.".
- Factor_market label "Factor market".
- Factor_market sameAs Faktormarkt.
- Factor_market sameAs 요소시장.
- Factor_market sameAs m.05f4n8c.
- Factor_market sameAs Faktormarknad.
- Factor_market sameAs Q641443.
- Factor_market sameAs Q641443.
- Factor_market sameAs 要素市场.
- Factor_market wasDerivedFrom Factor_market?oldid=681649190.
- Factor_market isPrimaryTopicOf Factor_market.