Suppose a company estimates the following for a product it sells:

$$ Tangible value the product provides: $$25$

$$ Intangible value the product provides: $$15$

$$ Costs customer must incur to purchase the product: $$30$

$$ The next best alternative$$s EVC $$ costs to customer to purchase that product: $$23$

Use these figures to calculate the EVC, Absolute EVC, and Relative EVC for this product.

b$.(3)$ Which of these figures $($EVC$,$ Absolute EVC, or Relative EVC$)$ is most closely related to the economic concept of consumer surplus? Briefly explain.

c$.(3)$ Briefly summarize the common mistakes managers can make when using EVC?