Easy1 markMultiple Choice
AZ-900 · Question 14 · Domain 1.4: Additional Cloud Concepts
True or False: 'Economies of scale' means that cloud providers can offer lower costs because they operate at a massive scale, passing the savings on to customers.
True or False: 'Economies of scale' means that cloud providers can offer lower costs because they operate at a massive scale, passing the savings on to customers.
Answer options:
A.
True
B.
False
How to approach this question
Think about buying in bulk at a wholesale store versus buying a single item at a retail store.
Full Answer
A.True✓ Correct
True
Economies of scale is the ability to do things more efficiently or at a lower cost per unit when operating at a larger scale. Cloud providers like Microsoft purchase massive amounts of hardware, reducing the per-unit cost, and pass those savings to customers.
Common mistakes
Confusing economies of scale with elasticity.
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