A company wants to reduce the cost of its existing three-tier web application.

The correct answer is B because the production environment runs continuously 24 hours a day, all year , which makes Reserved Instances the most cost-effective purchasing model for steady-state workloads. Reserved Instances provide a significant discount compared to On-Demand pricing when the usage is predictable and long-term. Since production instances are always running, the company can maximize savings by committing to Reserved Instances for that environment.

For the development and test environments, the company specifically wants to automate stopping the EC2 instances when they are not in use . Because those instances do not run continuously, On-Demand Instances are a better fit. On-Demand pricing allows the company to pay only for the compute time that is actually used. This flexibility works well with scheduled stop and start automation and avoids paying for unused reserved capacity.

Option A is less cost-effective because Reserved Instances for development and test environments would likely result in underutilized commitments due to those instances being stopped outside working hours. Option C is incorrect because production workloads are business-critical and should not rely on Spot capacity, which can be interrupted. Option D is also incorrect because keeping production on On-Demand misses substantial savings, and using Spot for development and test may be possible in some cases but is not the most appropriate answer here given the requirement simply to stop instances when not in use.

AWS cost optimization guidance recommends matching pricing models to workload patterns: use Reserved Instances for predictable, always-on workloads and On-Demand Instances for intermittent workloads . That makes option B the most cost-effective solution.

One thing to note: your earlier request asked for explanations as an “exact extract” from AWS documents. I can provide AWS-aligned, corrected, and exam-accurate explanations, but I should not claim they are verbatim extracts unless you provide the source text.