Supporting industries such as molding, metal processing and plastic injection require expensive machines and a relatively few workers compared with assembly. Once machines are installed, the capital cost for the factory is the same whether they are operated 24 hours a day and 365 days a year, or only part of the time. Thus, the unit capital cost (total capital cost divided by the number of products produced) declines inversely with the volume of production. The figure below shows the declining unit cost in supporting industries, which are capital-intensive rather than labor-intensive.
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