Factor pricing in economics pdf
The price mechanism describes the means by which millions of decisions taken by consumers and businesses interact to determine the allocation of scarce resources between competing uses The rationing function – when there is a shortage of a product, price will rise and deter some consumers from
Shadow Exchange Rate Factor (SERF) • Ratio of economic price of foreign currency to its market price. • Is generally greater than one • For economic analysis using the domestic price numeraire,
In this equation, m t is the share price at time t, E(d t+τ) is the expected dividend per share for period t+τ, and r is (approximately) the long-term average expected stock return or, more precisely, the internal rate of return on expected dividends.
Pricing the future: The economics of discounting and sustainable development Christian Gollier1 Toulouse School of Economics January 14, 2011 Princeton University Press 1 This project is supported by various partners of TSE and IDEI, in particular Financière de la Cité, SCOR, the French Ministry of Ecology, and the partners of the Chair “Sustainable Finance and Responsible Investment
Previous article in issue: Recursive utility using the stochastic maximum principle Previous article in issue: Recursive utility using the stochastic maximum principle Next article in issue: Euler equation estimation: Children and credit constraints We are grateful to a co-editor and two anonymous
Role of other factors like excess demand and excess supply are not declinable in determining the price in a market economy but is out of this paper’s capacity. Market economy Vs command market Command economy is an economy system that all economic activity is regulated by the government, formerly in China and the Soviet Union are two appropriate examples for such economic system.
Factor pricing is by the Austrian theory of imputation. To Austrians, all costs are opportunity costs. The fifth in a series of ten lectures, from Fundamentals of Economic Analysis: A Causal-Realist Approach .
The pricing kernel, or stochastic discount factor, is an important concept in mathematical finance and financial economics. The term kernel is a common mathematical term used to represent an operator, whereas the term stochastic discount factor has roots in financial economics and extends the concept of the kernel to include adjustments for risk.
This factor affecting land value is the sole most important factor which led to the development of various land price models in urban economics. 3. Neighborhood amenities: The cost of land is also affected by the availability of the facilities such as shopping areas, medical facilities, school, parks& playgrounds, and other basic need of the humans.
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Behavior of Prices Volume Author/Editor: Frederick C. Mills
Technology, trade and factor prices Paul R. Krugman* Department of Economics,E52-383a,Massachusetts Institute of Technology,Cambridge, MA 02139,USA Received 1 June 1998; accepted 3 March 1999 Abstract The view that recent changes in the distribution of income primarily reflect technology rather than trade may be the majority opinion, but has been harshly criticized by …
Factor price equalization is an economic theory, by Paul A. Samuelson (1948), which states that the prices of identical factors of production, such as the wage rate, or the rent of capital, will be equalized across countries as a result of international trade in commodities.
Factors of production is an economic term that describes the inputs used in the production of goods or services in order to make an economic profit. They include any resource needed for the
Based on the multiple linear regression model, we investigating which of the observed macroeconomic factors: the unemployment rate, the current account of the country stock index, gross domestic product and industrial production are significantly associated with property prices in relation to the different cultural environments: Slovenia
Three Types of Factor Models 1. Macroeconomic factor model (a) Factors are observable economic and financial time series 2. Fundamental factor model
Pricing factor of production – Download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online. Assignment of Economics, regarding pricing factor of production.
Domestic price numeraire = all economic prices expressed at equivalent domestic market price level Adjust all items valued at border prices (e.g., traded inputs and outputs) by a factor (SERF) to convert to the domestic price level OR World price numeraire = all economic prices expressed at equivalent world market price level Adjust all items valued at domestic prices (e.g., nontraded inputs
Theory of Factor Pricing OR Theory of Distribution: Introduction to Theory of Factor Pricing or Theory of Distribution : The theory of distribution or the theory of factor pricing deals with the determination of the share prices of four factors of production, viz., land, labor, capital and organization.
Evaluating factor pricing models using high-frequency
Theory of Factor Pricing Meaning and Need Microeconomics
Arbitrage pricing theory is an asset pricing model that predicts a security’s return using the linear relationship between its expected return and macroeconomic factors.
ECONOMIC FACTORS AFFECTING RICE PRODUCTION IN THAILAND EXECUTIVE SUMMARY Relatively little is known about the economic forces that affect rice production in Thailand.
A factor market is a marketplace for the services of a factor of production. A factor market facilitates the purchase and sale of services of factors of production, which are inputs like labor
A Five-Factor Asset Pricing Model Eugene F. Fama and Kenneth R. French* Abstract A five-factor model directed at capturing the size, value, profitability, and investment patterns in average stock returns is rejected on the GRS test, but for applied purposes it provides an acceptable description of average returns. The model’s main problem is its failure to explain the low average returns on
understanding that any deviation from this price would trigger a price war, that is here, would lead the firms to revert to the competitive price p = c . 6 If the firms have the same discount factor δ, by sticking to the collusive price, each would
When using this method it’s important to factor in all your business costs and not overlook taxes, a wage for yourself, superannuation and leave entitlements. Competition-based pricing strategies. There are a number of competition-based pricing strategies you can employ when setting your prices. Going rate pricing . This can be useful in situations where there is a clear price leader in the
A Five-Factor Asset Pricing Model Eugene F. Fama and Kenneth R. French* Abstract A five-factor model directed at capturing the size, value, profitability, and investment patterns in average stock returns is rejected on the GRS test, but for applied purposes it provides an acceptable description of average returns. The model’s main problem is its failure to capture the low average returns on
Department of Economics and Related Studies University of York Heslington York, YO10 5DD No. 17/04 Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Takashi Yamagata . Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Department of Economics & USC Dornsife INET, University of …
A five-factor asset pricing model. Eugene F. Fama and Kenneth R. French. Journal of Financial Economics, 2015, vol. 116, issue 1, 1-22 Abstract: A five-factor model directed at capturing the size, value, profitability, and investment patterns in average stock returns performs better than the three-factor model of Fama and French (FF, 1993).
120 Zhipeng Wu et al.: Establishment and Application of Multi-Factor Pricing Model in China A-Shares Market to conduct Fundamental analysis.
The statistical factors, f, and economic shocks, g, are equivalent if g = L -1 f for a nonrandom k×k matrix L. In this case, the obvious choice of rotation is f * = g.
2. Objectives of Pricing Policy. 3. Factors involved in pricing Policy. A pricing policy is a standing answer to recurring question. A systematic approach to pricing requires the decision that an individual pricing situation be generalised and codified into policy coverage of all the principal pricing problems.
that recognises both economic and non-economic factors’. This is an extension to the learning objective E3d which refers to the effect of e-marketing on the traditional marketing mix of product, promotion, price, place, people, processes and physical evidence. It is, of course, appropriate for accountants to specialise in the determination of price as this can relate closely to other
It is the elasticity or responsiveness of quantity supplied to a change in price which determines how much, if any, economic rent the owner of the factor receives as income in addition to transfer earnings.
International Journal of Production Economics, 2009, Volume 118, Issue 1, Pages 55-62 Demand forecasting for supply processes in consideration of pricing
Quantitative Economics 7 (2016) Evaluating factor pricing models 891 to structural breaks, switching regimes, and/or near-unit roots, 2 and are endogenous due to leverage effects.
The upcoming discussion will update you about the difference between the theories of product and factor pricing. 1. In the product (consumer goods) market, the consumers or the households are the buyers and the firms are the sellers.
J.F. Due and R.W. Clower Intermediate Economic Analysis. Resource Allocation, Factor Pricing, and Welfare. Fifth edition. The Irwin Series in Economics.
Pricing methods in economics pdf Or indeed a definition for various types of pricing methods, the inadequacy of. pricing methods in business economics
EQUILIBRIUM ASSET PRICING AND DISCOUNT FACTORS Cochrane, J. H., 1999b, “Portfolio Advice for a Multi-factor World”, Federal Reserve Bank of Chicago Economic Perspectives, 23, pp. 59—78.
Testing for Alpha in Linear Factor Pricing Models with a
The theory explains the factor price determination during long run and it has failed to explain the short run determination of factor pricing. Professor J.M. Keynes has rightly pointed out that in the long run we all are dead and there is no economic problem. In such a …
Fundamental Economic Factors That Affect Housing Prices salaries of construction workers, and other material costs, which in turn influences the expected housing prices.
international differences in factor prices, and international patterns in the factor content of trade. Second, it explains each of these separately by factor (as is the standard sinceVanek(1968) and Leamer(1980)) and explains these for the ratio of skilled-to-unskilled labor.
What Is Pricing Policy in Economics? Pricing policy refers to the way a company sets the prices of its services and products basing on their value, demand, cost of production and the market competition. Pricing policy is essential for all companies as it provides a guideline for creating profits and – two factor factorial design pdf MATH685Z – Mathematical Models in Financial Economics Topic 7 — Capital asset pricing model and factor models 7.1 Capital asset pricing model and beta values
Influence of Macroeconomic Factors on Prices of Real
Pricing factor of production Capital (Economics
Pricing Policies Considerations Objectives and Factors
Arbitrage Pricing Theory APT – Investopedia
Factor price equalization Wikipedia
MATH685Z – Mathematical Models in Financial Economics
Evaluating factor pricing models using high-frequency panels
Session 2.3 Financial Economic Analysis Shadow Pricing.ppt
– Fundamental Economic Factors That Affect Housing Prices
Theories of Product and Factor Pricing Perfect Competition
J.F. Due and R.W. Clower Intermediate Economic Analysis
Conversion to Economic Prices Asian Development Bank
Theory of Factor Pricing OR Theory of Distribution: Introduction to Theory of Factor Pricing or Theory of Distribution : The theory of distribution or the theory of factor pricing deals with the determination of the share prices of four factors of production, viz., land, labor, capital and organization.
EconPapers A five-factor asset pricing model
The statistical factors, f, and economic shocks, g, are equivalent if g = L -1 f for a nonrandom k×k matrix L. In this case, the obvious choice of rotation is f * = g.
Arbitrage Pricing Theory APT – Investopedia
The Economics of Tacit Collusion Final Report July 16
Pricing methods in economics pdf Or indeed a definition for various types of pricing methods, the inadequacy of. pricing methods in business economics
Evaluating factor pricing models using high-frequency panels
The Economics of Tacit Collusion Final Report July 16
Fundamental Economic Factors That Affect Housing Prices
It is the elasticity or responsiveness of quantity supplied to a change in price which determines how much, if any, economic rent the owner of the factor receives as income in addition to transfer earnings.
Pricing Policies Considerations Objectives and Factors
Fundamental Economic Factors That Affect Housing Prices
Equilibrium Asset Pricing and Discount Factors Overview
J.F. Due and R.W. Clower Intermediate Economic Analysis. Resource Allocation, Factor Pricing, and Welfare. Fifth edition. The Irwin Series in Economics.
Theory of Factor Pricing Meaning and Need Microeconomics
Pricing factor of production Capital (Economics
Endowments Factor Prices and Skill-Biased Technology
The theory explains the factor price determination during long run and it has failed to explain the short run determination of factor pricing. Professor J.M. Keynes has rightly pointed out that in the long run we all are dead and there is no economic problem. In such a …
Theory of Factor Pricing Meaning and Need Microeconomics
In this equation, m t is the share price at time t, E(d t+τ) is the expected dividend per share for period t+τ, and r is (approximately) the long-term average expected stock return or, more precisely, the internal rate of return on expected dividends.
PDF Pricing the future The economics of discounting and
Functions of the Price Mechanism Explained tutor2u Economics
International Journal of Production Economics, 2009, Volume 118, Issue 1, Pages 55-62 Demand forecasting for supply processes in consideration of pricing
Arbitrage Pricing Theory APT – Investopedia
Evaluating factor pricing models using high-frequency panels
Domestic price numeraire = all economic prices expressed at equivalent domestic market price level Adjust all items valued at border prices (e.g., traded inputs and outputs) by a factor (SERF) to convert to the domestic price level OR World price numeraire = all economic prices expressed at equivalent world market price level Adjust all items valued at domestic prices (e.g., nontraded inputs
Establishment and Application of Multi-Factor Pricing
Pricing factor of production – Download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online. Assignment of Economics, regarding pricing factor of production.
Theories of Product and Factor Pricing Perfect Competition
Establishment and Application of Multi-Factor Pricing
Department of Economics and Related Studies University of York Heslington York, YO10 5DD No. 17/04 Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Takashi Yamagata . Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Department of Economics & USC Dornsife INET, University of …
MATH685Z – Mathematical Models in Financial Economics
Influence of Macroeconomic Factors on Prices of Real
Pricing Policies Considerations Objectives and Factors
Department of Economics and Related Studies University of York Heslington York, YO10 5DD No. 17/04 Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Takashi Yamagata . Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Department of Economics & USC Dornsife INET, University of …
MATH685Z – Mathematical Models in Financial Economics
The pricing kernel, or stochastic discount factor, is an important concept in mathematical finance and financial economics. The term kernel is a common mathematical term used to represent an operator, whereas the term stochastic discount factor has roots in financial economics and extends the concept of the kernel to include adjustments for risk.
J.F. Due and R.W. Clower Intermediate Economic Analysis
EconPapers A five-factor asset pricing model
Theory of Factor Pricing OR Theory of Distribution: Introduction to Theory of Factor Pricing or Theory of Distribution : The theory of distribution or the theory of factor pricing deals with the determination of the share prices of four factors of production, viz., land, labor, capital and organization.
Pricing factor of production Capital (Economics
Pricing methods in economics pdf Or indeed a definition for various types of pricing methods, the inadequacy of. pricing methods in business economics
Establishment and Application of Multi-Factor Pricing
MATH685Z – Mathematical Models in Financial Economics
International Journal of Production Economics, 2009, Volume 118, Issue 1, Pages 55-62 Demand forecasting for supply processes in consideration of pricing
MATH685Z – Mathematical Models in Financial Economics
Pricing Kernels Defined in Relation to Asset Pricing
EQUILIBRIUM ASSET PRICING AND DISCOUNT FACTORS Cochrane, J. H., 1999b, “Portfolio Advice for a Multi-factor World”, Federal Reserve Bank of Chicago Economic Perspectives, 23, pp. 59—78.
Influence of Macroeconomic Factors on Prices of Real
Conversion to Economic Prices Asian Development Bank
This factor affecting land value is the sole most important factor which led to the development of various land price models in urban economics. 3. Neighborhood amenities: The cost of land is also affected by the availability of the facilities such as shopping areas, medical facilities, school, parks& playgrounds, and other basic need of the humans.
Pricing Policies Considerations Objectives and Factors
Functions of the Price Mechanism Explained tutor2u Economics
Factor price equalization Wikipedia
Domestic price numeraire = all economic prices expressed at equivalent domestic market price level Adjust all items valued at border prices (e.g., traded inputs and outputs) by a factor (SERF) to convert to the domestic price level OR World price numeraire = all economic prices expressed at equivalent world market price level Adjust all items valued at domestic prices (e.g., nontraded inputs
Pricing Kernels Defined in Relation to Asset Pricing
EQUILIBRIUM ASSET PRICING AND DISCOUNT FACTORS Cochrane, J. H., 1999b, “Portfolio Advice for a Multi-factor World”, Federal Reserve Bank of Chicago Economic Perspectives, 23, pp. 59—78.
Pricing Policies Considerations Objectives and Factors
When using this method it’s important to factor in all your business costs and not overlook taxes, a wage for yourself, superannuation and leave entitlements. Competition-based pricing strategies. There are a number of competition-based pricing strategies you can employ when setting your prices. Going rate pricing . This can be useful in situations where there is a clear price leader in the
Pricing Policies Considerations Objectives and Factors
International Journal of Production Economics, 2009, Volume 118, Issue 1, Pages 55-62 Demand forecasting for supply processes in consideration of pricing
Evaluating factor pricing models using high-frequency
Shadow Exchange Rate Factor (SERF) • Ratio of economic price of foreign currency to its market price. • Is generally greater than one • For economic analysis using the domestic price numeraire,
Theories of Product and Factor Pricing Perfect Competition
Factor Market Investopedia
This factor affecting land value is the sole most important factor which led to the development of various land price models in urban economics. 3. Neighborhood amenities: The cost of land is also affected by the availability of the facilities such as shopping areas, medical facilities, school, parks& playgrounds, and other basic need of the humans.
Arbitrage Pricing Theory APT – Investopedia
Testing for Alpha in Linear Factor Pricing Models with a
The theory explains the factor price determination during long run and it has failed to explain the short run determination of factor pricing. Professor J.M. Keynes has rightly pointed out that in the long run we all are dead and there is no economic problem. In such a …
Pricing Kernels Defined in Relation to Asset Pricing
The pricing kernel, or stochastic discount factor, is an important concept in mathematical finance and financial economics. The term kernel is a common mathematical term used to represent an operator, whereas the term stochastic discount factor has roots in financial economics and extends the concept of the kernel to include adjustments for risk.
Arbitrage Pricing Theory APT – Investopedia
Influence of Macroeconomic Factors on Prices of Real
Theory of Factor Pricing OR Theory of Distribution: Introduction to Theory of Factor Pricing or Theory of Distribution : The theory of distribution or the theory of factor pricing deals with the determination of the share prices of four factors of production, viz., land, labor, capital and organization.
Session 2.3 Financial Economic Analysis Shadow Pricing.ppt
Pricing factor of production – Download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online. Assignment of Economics, regarding pricing factor of production.
The Economics of Tacit Collusion Final Report July 16
Evaluating factor pricing models using high-frequency
Influence of Macroeconomic Factors on Prices of Real
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Behavior of Prices Volume Author/Editor: Frederick C. Mills
Equilibrium Asset Pricing and Discount Factors Overview
A factor market is a marketplace for the services of a factor of production. A factor market facilitates the purchase and sale of services of factors of production, which are inputs like labor
Factor price equalization Wikipedia
What Is Pricing Policy in Economics? Pricing policy refers to the way a company sets the prices of its services and products basing on their value, demand, cost of production and the market competition. Pricing policy is essential for all companies as it provides a guideline for creating profits and
Arbitrage Pricing Theory APT – Investopedia
Functions of the Price Mechanism Explained tutor2u Economics
In this equation, m t is the share price at time t, E(d t+τ) is the expected dividend per share for period t+τ, and r is (approximately) the long-term average expected stock return or, more precisely, the internal rate of return on expected dividends.
Theories of Product and Factor Pricing Perfect Competition
EQUILIBRIUM ASSET PRICING AND DISCOUNT FACTORS Cochrane, J. H., 1999b, “Portfolio Advice for a Multi-factor World”, Federal Reserve Bank of Chicago Economic Perspectives, 23, pp. 59—78.
Theory of Factor Pricing Meaning and Need Microeconomics
The Economics of Tacit Collusion Final Report July 16
Testing for Alpha in Linear Factor Pricing Models with a
Arbitrage pricing theory is an asset pricing model that predicts a security’s return using the linear relationship between its expected return and macroeconomic factors.
Factor price equalization Wikipedia
Theory of Factor Pricing Meaning and Need Microeconomics
This factor affecting land value is the sole most important factor which led to the development of various land price models in urban economics. 3. Neighborhood amenities: The cost of land is also affected by the availability of the facilities such as shopping areas, medical facilities, school, parks& playgrounds, and other basic need of the humans.
Pricing Kernels Defined in Relation to Asset Pricing
The statistical factors, f, and economic shocks, g, are equivalent if g = L -1 f for a nonrandom k×k matrix L. In this case, the obvious choice of rotation is f * = g.
J.F. Due and R.W. Clower Intermediate Economic Analysis
Pricing factor of production Capital (Economics
Three Types of Factor Models 1. Macroeconomic factor model (a) Factors are observable economic and financial time series 2. Fundamental factor model
Endowments Factor Prices and Skill-Biased Technology
Influence of Macroeconomic Factors on Prices of Real
Pricing Policies Considerations Objectives and Factors
Three Types of Factor Models 1. Macroeconomic factor model (a) Factors are observable economic and financial time series 2. Fundamental factor model
PDF Pricing the future The economics of discounting and
Three Types of Factor Models 1. Macroeconomic factor model (a) Factors are observable economic and financial time series 2. Fundamental factor model
Fundamental Economic Factors That Affect Housing Prices
Pricing Policies Considerations Objectives and Factors
J.F. Due and R.W. Clower Intermediate Economic Analysis
This factor affecting land value is the sole most important factor which led to the development of various land price models in urban economics. 3. Neighborhood amenities: The cost of land is also affected by the availability of the facilities such as shopping areas, medical facilities, school, parks& playgrounds, and other basic need of the humans.
Pricing Kernels Defined in Relation to Asset Pricing
Session 2.3 Financial Economic Analysis Shadow Pricing.ppt
Endowments Factor Prices and Skill-Biased Technology
Factor pricing is by the Austrian theory of imputation. To Austrians, all costs are opportunity costs. The fifth in a series of ten lectures, from Fundamentals of Economic Analysis: A Causal-Realist Approach .
MATH685Z – Mathematical Models in Financial Economics
Functions of the Price Mechanism Explained tutor2u Economics
Establishment and Application of Multi-Factor Pricing
Pricing methods in economics pdf Or indeed a definition for various types of pricing methods, the inadequacy of. pricing methods in business economics
Equilibrium Asset Pricing and Discount Factors Overview
Previous article in issue: Recursive utility using the stochastic maximum principle Previous article in issue: Recursive utility using the stochastic maximum principle Next article in issue: Euler equation estimation: Children and credit constraints We are grateful to a co-editor and two anonymous
EconPapers A five-factor asset pricing model
Factor price equalization Wikipedia
5. Pricing of the Factors of Production and the Labor
Factor price equalization is an economic theory, by Paul A. Samuelson (1948), which states that the prices of identical factors of production, such as the wage rate, or the rent of capital, will be equalized across countries as a result of international trade in commodities.
Fundamental Economic Factors That Affect Housing Prices
Pricing factor of production Capital (Economics
international differences in factor prices, and international patterns in the factor content of trade. Second, it explains each of these separately by factor (as is the standard sinceVanek(1968) and Leamer(1980)) and explains these for the ratio of skilled-to-unskilled labor.
Pricing Kernels Defined in Relation to Asset Pricing
J.F. Due and R.W. Clower Intermediate Economic Analysis
Department of Economics and Related Studies University of York Heslington York, YO10 5DD No. 17/04 Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Takashi Yamagata . Testing for Alpha in Linear Factor Pricing Models with a Large Number of Securities M. Hashem Pesaran Department of Economics & USC Dornsife INET, University of …
Testing for Alpha in Linear Factor Pricing Models with a
The pricing kernel, or stochastic discount factor, is an important concept in mathematical finance and financial economics. The term kernel is a common mathematical term used to represent an operator, whereas the term stochastic discount factor has roots in financial economics and extends the concept of the kernel to include adjustments for risk.
Establishment and Application of Multi-Factor Pricing
Equilibrium Asset Pricing and Discount Factors Overview
Testing for Alpha in Linear Factor Pricing Models with a
When using this method it’s important to factor in all your business costs and not overlook taxes, a wage for yourself, superannuation and leave entitlements. Competition-based pricing strategies. There are a number of competition-based pricing strategies you can employ when setting your prices. Going rate pricing . This can be useful in situations where there is a clear price leader in the
Endowments Factor Prices and Skill-Biased Technology
Equilibrium Asset Pricing and Discount Factors Overview
Fundamental Economic Factors That Affect Housing Prices salaries of construction workers, and other material costs, which in turn influences the expected housing prices.
Influence of Macroeconomic Factors on Prices of Real
EconPapers A five-factor asset pricing model
Factor price equalization Wikipedia
Factors of production is an economic term that describes the inputs used in the production of goods or services in order to make an economic profit. They include any resource needed for the
Evaluating factor pricing models using high-frequency
EconPapers A five-factor asset pricing model
Theory of Factor Pricing Meaning and Need Microeconomics
A factor market is a marketplace for the services of a factor of production. A factor market facilitates the purchase and sale of services of factors of production, which are inputs like labor
Establishment and Application of Multi-Factor Pricing