The rod cutting problem states that: Given a rod of length $n$ inches and a table of prices $P_i$ for $i=1,\dots,n$, determine the maximum revenue $R_n$.
In CLRS chapter 15 Rod cutting page 360:
We can cut up a rod of length $n$ in $2^{n-1}$ different ways
I can intuitively understand why this is so; basically we can construct a binary tree of height $\log N$. But can someone provide me a proof of why this is so?
A rod of length $n$ can be cut at any of the positions $1$ inch, $2$ inches, up to $n-1$ inches. Therefore for each way of cutting the rod, there is a corresponding sequence of $0$s and $1$s of length $n-1$, with a $1$ in the $i$th place meaning that the rod is cut at this position and a $0$ meaning that it is not cut.
Since there are $2^{n-1}$ such sequences, there must be $2^{n-1}$ ways of cutting the rod.