Final answer:
Factor payments are the incomes earned by the providers of production factors: rent for land, wages for labor, and interest for capital, all determined within their respective markets.
Step-by-step explanation:
The factor payments for land, labor, and capital are essentially the earnings received by those who provide these factors of production. For land, owners earn rent for its use, for labor, workers receive wages and salaries for their work, and for capital, the investor earns interest or profits.
These payments are determined by the factor markets, and are critical for understanding the cost of production and subsequently the decision-making processes in business and economics.