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.
Definition of economies of scale. Economies of scale occur when increasing output leads to lower long run average costs. Increasing output from Q2 to Q1, we see a decrease in long run average costs from AC2 to AC1. Economies of scale are important because they mean that as firms increase in size, they can become more efficient.