Think of other examples where collective provision of goods and services is cheaper than individual provision.

In factories where goods and services are produced at mass scale, in mining areas and in manufacturing units where also goods are produced and manufactured in bulk. So, few merchants prefer to sell their goods in wholesale and they don’t want any kind of mediator in their work and all they want is that customers should come to them and purchase goods and services from them so here both seller and buyer is benefitted in their own ways. Therefore it can be said that collective of goods and services is cheaper than individual provision.