Which of the Following Statements Regarding Cloud Computing Is True

question 49

Multiple Choice

Which of the following statements regarding cloud computing is true?

• A) The shift to cloud computing does not alter the margin structure for many in the computing industry.
• B) Cloud computing has brought about a drop in hardware and software sales, while augmenting service revenues.
• C) Cloud computing discourages innovation and therefore changes the desired skills mix and job outlook for IS workers.
• D) Cloud computing has raised the barriers for entry to new entrants to the information technology markets.
• E) Cloud computing has shifted power towards venture firms in those industries that had previously needed little startup capital.

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Definitions:

Marginal Cost

The incremental cost of fabricating one more unit of a product or service.

Profit-maximizing Quantity

The point of production where a company reaches its maximum profit, occurring when marginal revenue is equal to marginal cost.

Profit-maximizing Price

The price at which a firm can achieve the highest possible profit.

Total Cost

Refers to the complete cost of production that includes both fixed and variable costs.