With a list of the items required to produce any commodity (factors of production), analysts can determine, for any given production technology, how much more of the commodity could be produced with one additional unit of input while holding the other inputs fixed; it is also possible to distinguish among different production technologies based on the mix of factors used. An examination of the factors of production in the process of retail drug transaction can be an aid both to understanding the way drug markets and current drug-control efforts work and to developing new approaches to drug control. The factors necessary for drug markets are a common venue; the buyers' access to the venue, desire for drugs, income, and perceived chance of impunity; and the sellers' labor, operating scope within the venue, supply of drugs, ways to spend or save money earned, and perceived chance of impunity. The optimal strategy for any situation will focus on those factors that can most readily be made scarce relative to the others. 4 tables and 49 references