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.
Conversely, economies of scale offer a cost advantage when there is an increased output of a good or service. Economies of scale arise due to the inverse relationship between the average cost per unit and output level. Economies of scale focus on the output level of one product, whereas economies of scope focus on the variety of products offered. For example, suppose a shoe company only has fixed costs of $10,000 a month and only offers one design of shoes.