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yes, most of the costs are A) development and B) relatively fixed costs of maintaining the manufacturing staff and infrastructure.

The marginal cost of an additional batch is relatively small in comparison.






Developing a cheaper to produce product, even if that was done off-book and you could keep it secret, would need some level of different production methods (different ingredients, different machines or something which makes it cheaper) and some amount of testing which just selling the original product doesn't require.



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