Factor Markets

Definition

Factor markets refer to the market where factors of production, such as labor, capital, and land, are bought and sold. It is the market where individuals or firms demand factors of production to use in their production process.

Related terms

Labor Market: The labor market is a specific type of factor market that focuses on the buying and selling of labor services.

Capital Market: The capital market is another type of factor market that deals with the buying and selling of physical capital goods, such as machinery and equipment.

Land Market: The land market is a factor market that involves the buying and selling of natural resources, including land itself.