There has been much debate as to what determines factor prices.

We examine here the behaviour of the model for fixed factor prices.

But the value of these factor prices when he's age 90 depend on how much capital and labor will be around in that year.

Let us begin by assuming factor prices are given.

Bureaus can thus under some conditions exercise wage and factor price discrimination.

That is, employers cannot easily replace labor as doing so will lead to a large increase in other factor prices making it useless.

The "long-run" is the period after which factor prices are able to adjust accordingly.

Assuming that factor prices are constant, the production function determines all cost functions.

Firms buy productive resources in return for making factor payments at factor prices.

Distribution of national income is determined by factor payments(factor prices).

In the absence of trade barriers, even when factors are not mobile, there is a tendency toward factor price equalization.

The calculation is based on factor price.

An often-cited example of factor price equalization is wages.

Free and competitive trade will make factor prices converge along with traded goods prices.

But this simply shows the best way of producing any particular output at given factor prices; it does not say what output to produce.

Second, the neo classical adjustment mechanism depends on the flexibility of factor prices.

These perturbed risk factor price scenarios are used to generate a profit (loss) distribution for the portfolio.

The long-run aggregate supply curve is vertical because factor prices will have adjusted.

Unless, factor prices in general change.

Simply put, factor price is why the price of an item tends to approach the cost of producing it.

In particular, attention will be focused on the way firms' input-output decisions respond to changes in demand conditions and factor prices.

Then we would see that the profit of the firm is depended on factor prices and factor inputs. '

Reductions in factor prices do not then engender changing factor proportions, but of course they do reduce costs.

Factor price equalization - The relative prices for two identical factors of production will eventually be equalized across countries because of international trade.

The factor price equalization theorem has not shown a sign of realization, even for a long time lag of a half century.