A factor market is a place where businesses can buy the manufacturing factors or assets they need to make their goods and services. The input market is another term for this market.
A factor market is a public marketplace where people can buy and sell production factors. Everyone can participate.
The process of transforming raw materials into finished goods is considered as production. Factor markets are where companies get their inputs. 
To manufacture products and deliver services, resources would be utilized in the production process. Production factors are sometimes referred to as "resources." The key factors are entrepreneurship, labour, capital and land.

What impact does the factor market have?
A solid understanding of the factor market is essential for making good stock market investments. When evaluating a company's future potential, it is critical to consider real competitors in its final-product market and developments in its factor markets and their possible impact on future success.
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