Suppose your cell phone company offers a plan under which you can buy time in blocks of 100 minutes.Every 100-minute block costs $15.If you use 101 minutes you will pay $30.This is an example of a
A)variable cost
B)mixed cost.
C)fixed cost.
D)step cost.

Question

Quizplus · Accepted Answer

This is an example of a step cost because the cost remains fixed for a certain level of usage (up to 100 minutes) and then jumps to a higher level once that usage is exceeded (101 minutes), indicating a step pattern in the cost behavior.

Suppose Your Cell Phone Company Offers a Plan Under Which