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Hammer's Hardware, a nationwide chain of hardware stores, sells a line of tools under the Hammer's brand even though they were actually produced by another firm. Since the products are actually produced by another firm, the Hammer's Hardware brand is an example of a knockoff brand.
Production Function
A mathematical representation showing the relationship between input factors of production and the output of goods or services.
Lowest Cost
The minimal expense incurred in the production or procurement of goods or services, under efficient conditions.
Output
The quantity of goods or services produced within a given time period.
Factor Prices
The costs of the inputs that are used in the production of goods or services.
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