OK, I know I said I was signing off but:

“The more people you have to provide services and amenities to the more it costs, it’s a question of scale.”

"This is non-responsive because we’re talking about per capita costs. Why does it costs more per person to provide the same services to the same people because they live closer together?"

That was a direct response to your question. Why? Well the fact is they do, that may defy your common sense, but alas it's the case. Maybe Alex will be able to explain it.