In which market would a company seek to purchase machinery to increase production capacity?

A company looking to purchase machinery to increase production capacity would seek to operate in the factor market. The factor market is where businesses buy the resources they need to produce goods and services, such as labor, land, and capital. Machinery falls under capital, which is a key resource for production. For example, if a bakery wants to bake more bread, it might buy a larger oven to produce more loaves each day. By investing in this machinery, the bakery can increase its output and meet higher customer demand.