Question

If a family has one child enrolled in Diane's Day Care Center, it costs $75 per week. If a family has two children enrolled at Diane's, it costs $135. Diane's is using a(n) ________ differential.

Answer 1

If a family has one child enrolled in Diane's Day Care Center, it costs $75 per week. If a family has two children enrolled at Diane's, it costs $135. Diane's is using an quantity differential.

Explanation:

A differentiated price is a way to charge various prices for the similar kind of product and to the quantities of same number from various customers depending on the form of the product, payment criteria, delivery time, customer segment and so on.

In analytical and economics, the variation is on a scale of two values. In simple, the difference is the variation between things, especially wages. From, this, concluding that Diane uses the quantity differential for her Day care centre.