Wright’s Law

Wright's Law, also known as the learning curve principle, states that as the production of a technology or product increases, the cost per unit typically decreases. This happens because workers become more skilled, processes become more efficient, and production techniques improve over time. Essentially, the more you make something, the better you get at making it, resulting in cost savings. This concept is widely used in industries like manufacturing, where increased experience leads to greater efficiency and lower prices for consumers as production scales up.