In order to induce maximum production, rewards are offered for factors of production.  This is what is commonly termed as factor pricing.  Below are the rewards for factors of production.

Rent:- This is the payment or price paid for the use of land. It is income earned by the land owner. It is determined by the best alternative  the land could have been used for ( opportunity cost).

Wages:- Wages or salaries are payments made to workers ( labour) for their efforts in the production process.

Interest. This is payment made to the owner of capital, especially liquid capital. It is therefore income earned by the capital owner for the use of his capital by other individuals.

Profits:- It is the reward to an entrepreneur for undertaking risks and uncertainties associated with business activities.