. (9)Use this refresher on Economic Value to the Customerhttps://bit.ly/4aOcbJ4 to answer the following questions.

a. (3) 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?

Answer rating: 100% (QA)

a To calculate the Economic Value to the Customer EVC Absolute EVC and Relative EVC for the product we can use the given figures Tangible value 25 Int... View the full answer