How do customers benefit from Amazon’s massive economies of scale?

How do customers benefit from Amazon’s massive economies of scale?
A . Periodic price reductions as the result of Amazon’s operational efficiencies
B . New Amazon EC2 instance types providing the latest hardware
C . The ability to scale up and down when needed
D . Increased reliability in the underlying hardware of Amazon EC2 instances

View Answer

Answer: C

Explanation:

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.