Which of the following best describes a benefit of economies of scale from cloud computing?
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Correct answer: Lower variable costs over fixed costs.
Why this is the answer
Economies of scale in cloud computing mean that because cloud providers operate at a massive scale, they can achieve lower per-unit costs for infrastructure, power, and staffing. These savings are passed on to customers, resulting in lower variable costs compared to what an individual company might incur building and maintaining its own data centers (fixed costs). "The ability to trade variable expense for fixed expense" is incorrect because cloud computing generally allows you to trade fixed (upfront) expense for variable (pay-as-you-go) expense. "Increased speed and agility" is a benefit of cloud computing but not directly an economy of scale. "Increased operational costs across data centers" is the opposite of a benefit.
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