Easy1 markMultiple Choice
Domain 1.4: Additional Cloud ConceptsCloud ConceptsEconomies of Scale

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

What cloud concept describes the ability of cloud providers to offer services at a lower cost due to their massive scale of operations?

Answer options:

A.

Elasticity

B.

Economies of scale

C.

High availability

D.

Agility

How to approach this question

Identify the economic principle where buying in bulk reduces the cost per unit.

Full Answer

B.Economies of scale✓ Correct
Economies of scale
Economies of scale is the concept that a larger operation can do things more efficiently and at a lower cost per unit than a smaller operation. Cloud providers pass these savings on to customers.

Common mistakes

Confusing economies of scale with elasticity. Elasticity is a technical feature; economies of scale is an economic benefit.

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