General info on Best Buy, not an actual case is being referenced.

Consider the case of Best Buy, the big box consumer electronics retailer. Best Buy is an example of a "Category Killer,' which is a retailer that uses its size to gain a competitive advantage over smaller retailers and sometimes forces them out of business.

a. Use the concept of economies of scale to explain why this might be the case. Show the graph of economies of scale to support your answer by comparing Best Buy to smaller retailers.

b. Discuss how the following might lead to economies of scale for Best Buy:

(1) Indivisible inputs

(2) Any two of the following: purchasing economies, advertising economies, inventories

c. What is the implication of the existence of economies of scale on the number and size of firms in this industry?

PLEASE SHOW ILLUSTRATION/GRAPH NEEDED WHETHER BY HAND OR IN EXCEL FOR COMPREHENSION