what transactions take place in a factor market 
in the factor market businesses are the buyers they may buy rent or hire raw materials land or labor whatever a business needs in order to build package and deliver the products or services they provide must be obtained in the factor market the sellers include producers of raw materials however every individual who has a job is a participant in the factor market the skills and labor that the person is offering in return for compensation is a product that is made available in the factor market 