At the hyper visor level, I was under the impression that many VM’s are scheduled onto the same hardware CPU core.

One hardware core can be running 5 VMs at 20% capacity, and each VM owner will pay for 100% of their CPU capacity right? So in this case the landlord is renting your unused apartment to other customers then evicting them faster than you can open the door.

My point is cloud is benefiting from that ability and not passing it on the customers, which they could.