Different between good market and factor market
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Answer:
A factor market is different from the product, or output, market—the market for finished products or services. ... The primary difference between product markets and factor markets is that factors of production like labor and capital are part of factor markets and product markets are markets for goods
Goods markets are markets in which companies and households interact to buy and sell the output of goods and services. In this market, households act as buyers, while companies act as sellers. This role is the opposite of the factor market, the market where production factors transaction takes place.
Answer:
A factor market is a market in which companies buy the factors of production or the resources they need to produce their goods and services. Companies buy these productive resources in return for making payments at factor prices. This market is also referred to as the input market.
A factor market is different from the product, or output, market—the market for finished products or services. In the latter, households are buyers and businesses are sellers. But in a factor market, the reverse is true: households are sellers and businesses are buyers. The primary difference between product markets and factor markets is that factors of production like labor and capital are part of factor markets and product markets are markets for goods. The relationship between the factor market at the product market is determined by derived demand, or the demand for productive resources, as determined by the demand for goods and services output, or products. When consumers demand more goods and services, producers increase their demands for the productive resources used to make those goods and services.