Exam AWS Certified Cloud Practitioner CLF-C02 topic 1 question 50 discussion

Economies of scale refer to the cost advantages that a business can achieve by increasing its scale of production or operations. In other words, as a company produces more units of a good or service, its average cost of production per unit decreases. This cost reduction occurs because fixed costs are spread over a larger number of units, leading to increased operational efficiency and cost efficiency. A. The ability to trade variable expense for fixed expense: Cloud computing, in general, provides the advantage of paying for resources on a variable (pay-as-you-go) basis rather than a fixed, upfront expense. B. Increased speed and agility: While increased speed and agility are benefits of cloud computing, they are not specifically related to the economies of scale. C. Lower variable costs over fixed costs: This is a key benefit of economies of scale. With cloud computing, as usage increases, the cost per unit of resources tends to decrease due to the efficiency gained from large-scale operations. D. Increased operational costs across data centers: Increased operational costs across data centers would be contrary to the benefits of economies of scale.

C , economies scale speaks for itself

C = CORRECT

C. Lower variable costs over fixed costs: This is a key benefit of economies of scale. With cloud computing, as usage increases, the cost per unit of resources tends to decrease due to the efficiency gained from large-scale operations.

Benefit from massive economies of scale – By using cloud computing, you can achieve a lower variable cost than you can get on your own. Because usage from hundreds of thousands of customers is aggregated in the cloud, providers such as AWS can achieve higher economies of scale, which translates into lower pay as-you-go prices. https://docs.aws.amazon.com/whitepapers/latest/aws-overview/six-advantages-of-cloud-computing.html

C is the correct answer.

C is not correct because it says "over fixed costs". That can't be right as the first benefit is Trade fixed expense for variable expense. So B should be the right answer: https://docs.aws.amazon.com/whitepapers/latest/aws-overview/six-advantages-of-cloud-computing.html

C. Lower variable costs over fixed costs One of the benefits of the economies of scale in cloud computing is the ability to lower variable costs over fixed costs. In a traditional on-premises environment, organizations often need to invest in fixed infrastructure and resources, regardless of the actual usage or demand. Cloud computing allows businesses to scale resources up or down based on demand, paying only for what they use. This shift from fixed costs to variable costs can result in cost savings and increased efficiency.

Correct answer is C Benefit from massive economies of scale – By using cloud computing, you can achieve a lower variable cost than you can get on your own. Because usage from hundreds of thousands of customers is aggregated in the cloud, providers such as AWS can achieve higher economies of scale, which translates into lower pay as-you-go prices. https://docs.aws.amazon.com/whitepapers/latest/aws-overview/six-advantages-of-cloud-computing.html

Answer C is Correct.

C seems to be correct. it is the only one that reflects cost benefits which are asked in the question. While A also mentioned cost it is contradicting the value of cloud which is trade capital expense for variable cost.

Read the paragraph that starts with: Benefit from massive economies of scale. https://docs.aws.amazon.com/whitepapers/latest/aws-overview/six-advantages-of-cloud-computing.html

answer is C 1 - is reversed benefit "Trade fixed expense for variable expense" thus invalid 2 - speed and agility has nothing to do with economies of scale 4 - "Increased operational costs across data centers" is not a benefit 3 - Benefit from massive economies of scale – By using cloud computing, you can achieve a -------lower variable cost than you can get on your own------. Because usage from hundreds of thousands of customers is aggregated in the cloud, providers such as AWS can achieve higher economies of scale, which translates into lower pay as-you-go prices. https://docs.aws.amazon.com/whitepapers/latest/aws-overview/six-advantages-of-cloud-computing.html

Beside B, all other answers are reversed answers of advantages of cloud computing.

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Increase speed and agility – In a cloud computing environment, new IT resources are only a click away, which means that you reduce the time to make those resources available to your developers from weeks to just minutes. This results in a dramatic increase in agility for the organization, since the cost and time it takes to experiment and develop is significantly lower.

A. One of the benefits of the economies of scale in cloud computing is the ability to trade variable expenses for fixed expenses. Cloud services allow organizations to pay for the resources they use on a variable and scalable basis, rather than incurring the fixed costs associated with maintaining physical data centers and infrastructure. This flexibility helps businesses better manage their costs, as they can scale up or down as needed, reducing the need for large upfront investments in infrastructure. In summary, both options A and C are relevant to the benefits of cloud computing, but option A specifically addresses the idea of trading variable expenses for fixed expenses, which aligns with the concept of economies of scale.