Microsoft Certified: Azure Fundamentals (AZ-900) Practice Exam

What is one consequence of the economies of scale in cloud computing?

1. Increased costs for individual users

2. Shared costs result in lower prices for users

3. More physical security risks

4. Less flexibility in service offerings

The correct answer is: Shared costs result in lower prices for users

The correct answer highlights how economies of scale in cloud computing lead to shared costs, making it possible for service providers to offer lower prices to users. When cloud service providers operate at a large scale, they can spread their fixed costs, such as infrastructure and maintenance, over a larger number of customers. This volume enables them to reduce individual user costs, providing access to advanced resources and capabilities that might be prohibitively expensive if users were to invest individually. The other possibilities do not accurately reflect the primary benefit of economies of scale. While increased costs for individual users, more physical security risks, and less flexibility in service offerings could be potential issues in certain contexts, they are not direct consequences of economies of scale in cloud computing. Instead, economies of scale are fundamentally about increasing efficiency and reducing costs for users, which is captured in the correct answer.