The learning curve captures a robust empirical fact: each time cumulative production doubles, the labor hours (or cost) per unit fall by a roughly constant percentage — an 80% curve means hours drop to 80% of their prior level at each doubling.
It is essential for cost estimating, capacity planning, and pricing in low-volume, high-complexity industries like aerospace, where early units are far more expensive than later ones (see hours-per-unit forecasting).