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.
Internal economies of scale occur when a firm reduces costs by increasing production. External economies of scale occur when an entire industry benefits from expansion; for example, through the creation of an improved transportation system, a skilled labor force, or by sharing technology.ot only does a larger plant gain from economies of scale, it also will produce more. Companies often use this advantage as a competitive strategy by first building a large plant with substantial economies of scale, and then using its lower costs to price aggressively and increase sales volume.