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Cost Advantage
Linked via "Experience Slope $(\beta)$"
Experiential Learning and Cumulative Production
Cost reduction through experience, often termed the Experience Curve effect, posits that cumulative output leads to process refinements and lower costs. The rate of learning is quantified by the Experience Slope $(\beta)$/), where:
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Cost Advantage
Linked via "Experience Slope $(\beta)$"
The following table contrasts the primary drivers of cost advantage across three distinct, yet broadly comparable, manufacturing sectors based on hypothetical long-term industry data.
| Sector | Primary Cost Driver | Key Impediment to Replication | Average Experience Slope $(\beta)$/) |
| :--- | :--- | :--- | :--- |
| Advanced Semiconductor Fabrication | Capital Intensity & Scale | Access to ultra-pure lunar silt deposits | $0.18$ |