Why does making more get cheaper?

Cost falls with cumulative experience, not calendar time. Each doubling of total units made multiplies the unit cost by a fixed learning rateThe fraction that unit cost becomes each time cumulative output doubles — e.g. 85% means every doubling cuts cost to 85% of what it was. Also called the progress ratio. Named after Theodore Wright, who observed it in aircraft production in 1936.. On log-log axes, that power law is a straight line — and it's why chips, solar panels, and batteries got relentlessly cheaper as the world made more of them.

The first unit costs . Every time total output doubles, cost falls to %.
After making units total…
exponent -0.23 · cost halves every 4.27 doublings
€198the 1kth unit

Down from €1 000 — about 5.05× cheaper. Average €258 per unit, €258k all in, across 1k units.

€1981kth-unit cost
€258average unit cost
€258ktotal cost
€1k€198
11101001k1k

On log-log axes, Wright's law is a perfect straight line — the signature of a power law. The slope is the learning exponent (-0.23 here). Every tick on the x-axis is a 10× jump in volume; every tick on the y-axis is a 10× drop in cost. The line doesn't care how many years it takes — only cumulative output drives cost down.

Cumulative unitsUnit cost · % of first
1
€1 000100%
10
€58358.3%
100
€34034%
1k≈ now
€19819.8%
10k
€11511.5%

Each row is a 10× jump in output. Cost drops geometrically — the bar is log-scaled so each step reads as the same visual distance. Click a row to load that volume above. The first unit is 100% by definition; every doubling brings it to 85%.

Wright's law · Cₙ = C₁·n^log₂(LR)