A cellular telephone plan that charges $45 per month for up to 1000 minutes per month of airtime and then charges $0.50 per minute for each minute used over 1000 is an example of a step cost.

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This is an example of a mixed cost, which includes a fixed component ($45 per month) and a variable component ($0.50 per minute over 1000 minutes). Step costs change at certain levels of activity, but not for every unit of change.

A Cellular Telephone Plan That Charges $45 Per Month for Up