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The cost of an item or a service in terms of the various factors that have played a part in its production or availability, and exclusive of tax costs.
- ‘At very low transport and communication costs, there is little incentive for agglomeration: necessary inputs can be delivered to wherever the factor costs are lowest.’
- ‘The existence of these additional costs simply implies that firms will move only when the factor cost advantages of alternative locations also compensate for these additional relocation costs as well as the increased transport costs.’
- ‘If the coefficient estimates on per capita income are negative, however, that would suggest that Japanese firms were, on average, drawn to a country not for its market potential but, rather, for lower factor costs of production.’
- ‘The lack of data makes it impossible to measure the impacts of these market imperfections on factor costs.’
- ‘There is no precedent in history for an important factor cost to drop so rapidly for such an extended period of time.’
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