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One solution to the problem of combinatorial explosion is to design a network in which:
Contribution Margin
The amount by which sales revenue exceeds variable costs of production, indicating how much contributes to fixed costs and profits.
Marginal Cost
The cost incurred by producing one additional unit of a product or service, important for pricing and production decision-making.
Contribution Margin
The amount by which a product's sales revenue exceeds its variable costs, used to cover fixed costs and towards profit.
Marginal Cost
The additional cost incurred by producing one more unit of a product or service.
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