Easy1 markMultiple Choice
Domain 1.4: Additional Cloud ConceptsCloud ConceptsAdditional Concepts

AZ-900 · Question 14 · Domain 1.4: Additional Cloud Concepts

Which cloud concept describes the ability of cloud providers to offer lower prices because they purchase hardware in massive quantities?

Answer options:

A.

Elasticity

B.

High availability

C.

Economies of scale

D.

Agility

How to approach this question

Identify the economic principle that benefits large-scale operations.

Full Answer

C.Economies of scale✓ Correct
Economies of scale
Cloud providers like Microsoft can purchase hardware at a massive scale, reducing the cost per unit. They pass these savings on to customers, a concept known as economies of scale.

Common mistakes

Confusing economies of scale with elasticity or scalability.

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