Questions & Answers about Hammeren var dyr, men det er en utgift jeg kan leve med.
Var is past tense and refers to the hammer’s price in the past context: Hammeren var dyr (the hammer was expensive).
After men, Norwegian often uses present tense to express a general, still-true attitude or evaluation right now: det er en utgift jeg kan leve med (it is an expense I can live with).
English does this too sometimes: The hammer was expensive, but it’s something I can live with.
Hammeren is the definite form: hammer + -en = the hammer (common gender). It implies a specific hammer already known in the context.
En hammer would mean a hammer (not specific).