@Isa106
I'd assume because the base price is for probably half of the max occupancy allowed - and initial search results are based on the lowest price set.
For instance, if there is a listing that has a high season price and low season price, and then the base price covers only up to the first 5 guests but the max occupancy is 10 people.
Your search for a listing that allows 10 people will show this listing with a base price which is the "low season + up to 5 guests" price. Once the dates and no. of people are put in, then the calculation and total will become what you are actually charged. It's just how ABB provides search results so not something hosts can control.
Although you are probably right in thinking smaller groups will not book a large place, having 5 people , 1 person each in a 5 bdr home and 10 people (5 couples) each in a 5 bdr home would be very different in terms of utilities, water, towels and amenities. Also for smaller groups maybe they can not use an entire floor of the house but otherwise in terms of location and amenities it's perfect.
Hosts could charge a flat fee for the entire home regardless of no. of people in the guest group but I think most people would think it's not fair to smaller groups or although the max occupancy is 10, the host might think the optimal group size is 8. Each home and host is different so pricing is not always based on the same assumptions for everyone.