This means that there is no money used to make transactions. Instead, for trade to occur, goods must be traded for other goods. Thus we need at least two goods in the model. Let the two produced goods be wine and cheese. Two factors Two factors of production are used to produce wine and cheese.
Wine production requires wine workers while cheese production requires cheese workers.
Although each of these factors is labor, they are different types of labor since their productivities differ across industries. Consumers maximize utility Factor owners are the consumers of the goods. The factor owners have a well defined utility function defined over the two goods. Consumers maximize utility to allocate income between the two goods. The immobile factors model is a general equilibrium model.