A key idea in economics is the concept of factor price determination, which looks at how the market determines the prices of components of production like lab our, capital, land, and entrepreneurship. An overview of factor price determination and its importance in economic research is given in this chapter. Production inputs are compensated according to their output, scarcity, and market demand. According to the principle of factor price determination, factors are paid according to how much they contribute to the production process. The equilibrium prices of factors are influenced by the interaction of supply and demand forces, with factors being allocated to their most valuable applications.
Availability Lab, Factor Prices, Income Distribution, Lab Capital, Marginal Productivity.
[Mr. Yelahanka Lokesh (2022) A Basic Approach on Factor Price Determination] (ISSN 2347 - 5552). www.ijircst.org
Mr. Yelahanka Lokesh
Assistant Professor, Department of Commerce And Economics, Presidency University, Bangalore, India,
Email Id-lokesh.yr@presidencyuniversity.in
