C. Economies of scale
Cloud Service Providers (CSPs) can offer unlimited capacity to customers, in large part, due to economies of scale. Economies of scale refer to the cost advantages that come with increased production or service capacity. As CSPs expand their data centers and infrastructure to serve a global customer base, they can achieve economies of scale by spreading the costs of hardware, data centers, and maintenance across a large number of customers. This allows them to provide seemingly limitless capacity and resources to individual customers without the need for those customers to invest in their own physical infrastructure.
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