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What is the price of the nearest comparable alternative

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Old Product is sold at $27 and Reduced Product is less functional than Old Product, to the point that it delivers $6 less value to customers than Old Product. Reduced Product costs $10 to make.

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

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

c. What is the exchange value of Reduced Product?

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

Reference no: EM132832101

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