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... er cost less than a quarter of the former.

From this, Darius could ascertain that the organic development of the final item had to play an important role in calculating the cost. Organic development in this case referred to the precise process an item underwent before it was formed.

In the case of the dagger, it was formed through blacksmithing. The iron ore would have grown in the mines, before it would be extracted then purified into an ingot through smelting, then forged carefully ...

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