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Suppose a company estimates the following for a product it sells: Tangible value the product provides: $ 2 5 Intangible value the product provides: $

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 alternatives 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?

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