Factor market

From Conservapedia
This is an old revision of this page, as edited by Economist (Talk | contribs) at 23:58, 23 May 2009. It may differ significantly from current revision.

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

In economics, a factor market is a market for factors of production. It is a reversal of the general setup of markets in that producers function as buyers, with other producers or households and consumers functioning as sellers. The market for labor is an example of a factor market, where the wage rate is equal to the value of the marginal product of labor for the last worker employed in the industry as a whole.