Final answer:
The example of a step-fixed cost is 'c. Cost of tuition at $300 per credit hour up to 15 credit hours (Hours taken in excess of 15 hours are free)', as this cost remains constant up to a certain point and does not increase with additional credit hours beyond that point.
Step-by-step explanation:
The question you've asked relates to identifying a step-fixed cost from the given options. A step-fixed cost is a type of fixed cost that remains constant over certain ranges of output, but jumps to a higher amount as output increases beyond certain points. The correct answer is 'c. Cost of tuition at $300 per credit hour up to 15 credit hours (Hours taken in excess of 15 hours are free)'. This is because the cost remains fixed as long as the number of credit hours is below or equal to 15 hours. Once this threshold is exceeded, the cost does not increase further, which reflects a step pattern in costs.
A step-fixed cost is a fixed cost that remains the same within a certain range of production and then jumps to a higher level when production exceeds that range. In the given options, the cost of tuition at $300 per credit hour up to 15 credit hours (Hours taken in excess of 15 hours are free) is an example of a step-fixed cost. The cost remains fixed at $300 per credit hour for up to 15 credit hours, but once the student takes more than 15 credit hours, the cost becomes zero.