Suppose You Are Charged a $10 Per Month Base Charge

question 96

Multiple Choice

Suppose you are charged a $10 per month base charge for your electrical service.You are also charged an additional $0.08 for every kwh of electricity you use.Which one of the following statements is not true?

• A)The $10 base charge is a fixed cost.
• B)The $0.08 charge per kwh is a variable cost.
• C)The total cost is an example of a step cost.
• D)The total cost is an example of a mixed cost.

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