What is factor prices?

What is factor prices?

Factor prices are the rewards offered to factors of production for the service rendered.

Or

A factor price is the unit cost of using a factor of production, such as labor or physical capital.

 

Examples

  • Rent for land
  • Wages or salaries for labour
  • Interest for capital
  • Profit for entrepreneurship
CATEGORIES
TAGS
Share This

COMMENTS

Wordpress (0)
Disqus ( )