The impact of market conditions of factors of production on the activities of the enterprise

The subject of the research is the theoretical and methodological bases of the process of
functioning of the markets of factors of production, features of formation of a conjuncture of the
markets of factors of production and their influence on work of the enterprise in the conditions of
strengthening of competition.
The purpose of the study is to develop and form a methodology for determining the interaction of
supply and demand in the markets of factors of production, as well as analysis of the enterprise taking
into account the impact of modern conditions of markets of factors of production.
Research methods. The article uses general and special methods of research of economic
processes, analysis of market conditions and functions and synthesis of processes aimed at improving
the activities of the enterprise.
Results of work. As a result of writing the article, a study was conducted, which confirms that the
markets of factors of production are special types of markets in a market economy. In contrast to the
markets for finished goods and services, enterprises in the markets of factors of production are not
sellers of finished goods and services and do not form and influence the supply of factors of production

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are buyers of factors of production such as labor, natural resources, land and capital. and affect
the demand for factors of production. Market prices for factors of production are formed not only as a
result of the interaction of supply and demand, but also taking into account market prices for finished
products and services. The cost is determined by the cost of labor for the production of goods and
services, and the price by market conditions, ie the ratio of supply and demand for goods and services.
The practical relationship between value and price is reflected in the cost principle of pricing, when the
price is determined by the sum of production costs and a certain amount of profit of the enterprise,
taking into account competition and inflation.
Field of application of results. Economics and management of the national economy at the
macroeconomic, regional and microeconomic levels, enterprise management, management, strategic
management.
Conclusions. As a result of the study, taking into account many additional factors and features of
enterprises, we can conclude that the main factors influencing the price level are supply and demand, a
significant impact on market conditions has a form of competition and costs of enterprises. Prices for
factors of production are quite a powerful tool to influence the activities of the enterprise. In a market
economy, prices and conditions form an important component of the system of self–regulation. In
general, the price mechanism can be divided into two interacting parts. The first is related to the types,
structure, magnitude and dynamics of changes in market prices for factors of production. The second
is related to the methods and rules of formation of new and change of current prices for factors of
production and the corresponding change of market conditions of factors of production.