1.One of the more recent innovations in computer technology is cloud computing.With cloud computing, information and software are provided to computers on an 'as needed' basis, much like utilities are provided to homes and businesses.At the beginning of 2015, Amazon and Microsoft were ranked number 1 and 2 in terms of size for cloud services providers.In a statement advocating the advantages of large, public cloud providers like Amazon.com over smaller enterprise data centers, James Hamilton, a vice-president at Amazon claimed that "server, networking and administration costs the average enterprise five to seven times what it costs a large provider."

a.What does Hamilton's statement imply about returns to scale in the cloud computing industry?Explain clearly.

b.What does the statement indicate about the size of the companies that will most likely dominate this industry in the long-run?Explain clearly.

c.Based on your answer to 'b', do you think that the cloud computing industry is perfectly competitive?Explain clearly.