There is another benefit to living in a common interest community and paying HOA fees â the ability to use and enjoy community amenities you may not be able to purchase and maintain on your own, like a swimming pool, tennis courts or walking trails.
ECONOMIES OF SCALE. AND ECONOMIES OF SCOPE. Economies of scale are reductions in average costs attributable to production volume increases. They typically are defined in relation to firms, which may seek to achieve economies of scale by becoming large or even dominant producers of a particular type of product or service.
Economies of scale exist when a unit increase in output results from a less than proportional increase in input (Silvestre 1987). Economies of scope occur when the unit average cost to produce two or more articles is lower than when they are produced by separated entities (Panzar and Willig 1981).