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 is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase. More simply put, when more goods can be produced on a larger scale with lower costs, economies of scale is said to be achieved. Law Of Diminishing Returns. The law of diminishing returns (also law of diminishing marginal returns or law of increasing relative cost) states that in all productive processes, adding more of one factor of production, while holding all others constant (ceteris paribus), will at some point yield lower per-unit returns.