Distinguish between: Factor market and Goods market
Answers
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.
Answer:
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.
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.