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What is the price of the nearest comparable alternative

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Old Product is sold at $5 and Improved Product delivers $2 more in value to customers than Old Product. Improved Product costs $3 per unit to make.

a. What is the price of the nearest comparable alternative for Improved Product?

b. What is the differential value of Improved Product in comparison to Old Product?

c. What is the exchange value of Improved Product?

d. What range would you suggest to executives for pricing Improved Product?

Reference no: EM132829619

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