The LDO regulator is best suited for battery-powered applications, because the lower dropout voltage translates directly into cost savings by reducing the number of battery cells required to provide a regulated output voltage. If the input-output voltage differential is low (like 1V to 2V) the LDO is more efficient than a Standard regulator because of reduced power dissipation resulting from the load current multiplied times the input-output voltage differential.
This hierarchy means that a linear regulator will normally try to operate in "constant voltage" mode, where the voltage error amplifier is regulating the output voltage to a fixed value. However, this assumes that both the load current and junction temperature are below their limit threshold values.
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