The activities of any household and industrial enterprise are based on the application of production factors and the receipt of corresponding income from this. Thus, in their work, these subjects use especially important objects and elements that have a significant impact on the possibility and effectiveness of functioning. Next, we consider the main types of factor income. 
General information
In market conditions, the formation of factor income has a number of features. However, in general, the well-known mechanism of competitive price equilibrium acts in this process. One or another production resource is always owned by the owner. No entity will transfer gratuitously the right to use them to other persons. In recent decades, there has been a tendency to increase resource costs. As a result, factor incomes are also declining. In the economy, this leads to changes in the behavior of companies and citizens, makes them need to find substitutes for expensive resources, and look for ways to reduce production costs. Demand for funds is presented only by entrepreneurs. They relate to that part of society that can organize and realize the release of goods and services that are necessary for the final consumer.
Theoretical aspect
Production is the process by which spiritual or material wealth. To start it, you must have at least a contractor and material to create a service or product. As production factors, Marxist theory allocates the means and object of labor, as well as the labor force of people. Along with this, science divides them into two groups. The first is personal, and the second is the material factor. The first is presented in the form of labor as a combination of a person’s spiritual and physical abilities to work. The material factor is production facilities. Organization of the enterprise involves the coordinated interaction and functioning of these elements. According to Marxist theory, the interconnection of factors, the features of their combination determine the class composition in society, the relationship between public associations and the social orientation of the production cycle. Marginalist doctrine identifies four groups of elements used in the manufacture of goods:
- Entrepreneurial activity.
- Capital.
- Work.
- The earth.
Factor income
As mentioned above, each resource has its own price. Factor income in the economy - these are the revenues that the owner receives from the use of production assets. In practice, several types of rewards are determined:
- Rent (mountain, land, water, and so on) as revenues from used natural resources.
- Salary as remuneration for labor.
- Interest as factor income from the use of money capital.
- Entrepreneurial income as a reward for the use of relevant abilities.
- Profit as factor income using real capital.
- Proceeds from intellectual property in the process of using knowledge.
Behind each production factor is a specific subject (or their group):
- Labor belongs to workers.
- Land to landowners.
- Entrepreneurial abilities - to the organizers of production.
- Capital - to the owners.
All groups of these entities apply for factor income from the total share of revenues. 
Classification
In theory, revenues from resources are divided into individual economic and national economic. Factor incomes are funds:
- The population.
- Enterprises.
- States.
- Society.
The totality of these revenues determines the highest demand for productive resources, services, goods.
Specificity
According to the results of their activities, resource owners receive nominal income - cash. Relative to them, a complex relationship is created between the state and the owner. Power through the current tax system charges a certain portion of the funds. The amount that remains after repayment of all obligations is net factor income. The value of this balance is determined not only by the amount of money, but also by the dynamics and condition of prices for services and goods. In this regard, distinguish such a thing as the purchasing power of funds. 
The financial analysis
During its implementation, indicators are used that determine the marginal, average and gross factor incomes. The latter is the revenue from the sale of all products in money. Average factor income is calculated per unit of products sold. Marginal revenue is the gross increment from the sale of additional products. It is considered as the ratio of revenues to the increase in the quantity of goods sold. The definition of this indicator is of particular importance for the company. In economic practice, the law on diminishing returns applies. Calculation of marginal revenue acts as the basis for the enterprise to change production volumes in the direction of decrease or increase.
The essence of the law of diminishing returns
In the process of activity, any entrepreneur:
- As far as possible accurately determines the socially significant order, qualitative and quantitative characteristics.
- Organizes the management of the company so that the goals are achieved.
These tasks are considered to be central to the activities of the entrepreneur. A businessman is always trying to predict the market, minimize risk and uncertainty. The entrepreneur must feel the border beyond which there will be a drop in the profitability of his enterprise. In the process of managerial activity, the businessman is faced with the phenomenon of falling returns. Its essence lies in the fact that the additional costs of one resource that are used with an unchanged number of others yield less and less volume of additional goods and, therefore, gross revenue. With a one-time and the same increase in existing production factors, a different result can be obtained.
Such a situation may lead to an increase in the volume of output and gross revenue of the company. However, in this case, there is a risk. With an increase in product supply, the market value may decrease and the income from the sale of each additional unit of production may decrease. This indicates the need to reduce production scale.
Pricing
The company acts as a manufacturer and seller of products, as well as a buyer of factors. For him, as for an implementer, interest is typical for selling the product as expensive as possible. Acting as a buyer in the market of production factors, he seeks to acquire the necessary resources as cheaply as possible. All these operations are subject to revenue. It is considered the main stimulus and indicator of the effectiveness of the company. The size of production costs and their structure determine certain requirements for the scheme of resource acquisition. The only criterion in this process is the priority of the lowest manufacturing costs with high quality of the manufactured goods. Comparing the market prices of production factors with marginal products that are created with their help, the entrepreneur makes his choice.
Demand curve
The general principles in accordance with which its formation is carried out are reduced to the following provisions:
- The starting point is the demand for manufactured products.
- Achieving equality of marginal profits and costs defined by company policy.
- The structure of demand for resources is created when the unit of capital spent on the acquisition of any productive means gives the maximum marginal product.
Labor offer
It has its own characteristics that are associated with:
- The number of population and the number of its working part.
- The quality of society, the degree of professional and general training.
- The duration of the working week and day.
- Correspondence of the qualification structure of the able-bodied part to the needs of the national economic complex in workers of certain specialties.
The total indicator of wages is determined at the intersection of supply and demand curves. An increase in the need for labor raises the level of pay. This, in turn, leads to increased employment. A decrease in demand for labor leads to opposite phenomena. In the process of capital cost movement, the availability of available funds, their supply and the need for them are of particular importance.
Conclusion
As mentioned above, all resource owners receive income from them. It is expressed in various forms and is of paramount importance for the movement of the enterprise in the market, the expansion of production. What acts as profit for the owner of the resource is the cost, the cost to the consumer (buyer) of this factor.
