Refer to the figure below. A charge for electricity that is based on a flat rate plus a variable cost after a certain number of kilowatt-hours are used follows which of the following cost behavior patterns?

Question

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Graph C shows a flat rate up to a certain level of usage, after which the cost increases at a constant rate. This is representative of a mixed cost behavior, where there is a fixed component (flat rate) and a variable component (variable cost per kilowatt-hour). The other graphs do not show this mixed cost behavior.

Refer to the Figure Below