modern competitive market is diverse and includes both institutionalized factors and factors, the effect of which does not fit into the scheme and description of its functioning.First of all, it should be noted that the factor markets - these are the elements of economic activity, in which the main subjects of is capital, intellectual potential, knowledge, land and mineral resources, entrepreneurial art - in short, a very wide range of substances that directly or indirectly affecton economic activity.A special role is played by sales markets, where as these products are the primary resources, which are the labor, capital and land.Factor markets have a number of characteristic properties, significantly distinguish them from other types of markets.First of all, you must realize that on their own factors of production, which directly or indirectly used in the production are classified into two conditional category:
- material factors, which should be classified as land and capital;
- intangible or social factors, which are based on human labor (with all the terms of this complex structure) and entrepreneurial skill.
Competitive factor markets in modern conditions conducive to the realization of a number of functions that is performed as a resource providing operating entities as well as intangible.In addition, factor markets contribute to addressing the effective allocation and use of resources of the natural environment, provide a rational logistics economic ties, promote the formation of an adequate market conditions.
Typically, factor markets are characterized by the presence of them fairly large number of participants, which directly affect the price on the market of production factors can not.In particular, if a company decides to purchase for their needs a portion of the total market volume of building materials, in this case, the decision of the company on the acquisition will have no impact on the value of these materials.Accordingly, on the contrary, if a manufacturer of building materials, which controls only a small part of the market starts selling a new batch of its products, it will not significantly affect the average market price indicators.
To understand why these markets have such a feature, there should be analysis of competitive conditions, ie supply and demand for a particular factor of production on the market.This is followed by the figures add up and carry out the same operation on the proposal on the market.As a result of this analysis is obtained snapshot curves of supply and demand, which is transparent enough characterizes the situation at the moment.
curves of supply and demand graphs describing the state of the market factors may differ significantly from the same, but characterizing the consumer market.The reason for this phenomenon is that demand factors, in contrast to the demand for commodities is always a derivative of the value of the total production of the company-participant of the factors, and it costs the factors used.
But there can be the situation in which these figures will look like.But it does not mean that market factors proibretaet properties consumer market.The reason for this may be a change in the general situation on the Market makrokrovne, which affects the local market, or if he is part of the (branch) in terms of greater market structure.
