Answer to Question #8729 in Economics of Enterprise for LaMarcus Streeter

Question

“Best Buy” competes aggressively on price with rivals such as Costco Wholesale, Sam’s Club, Wal-Mart, and Target but is also known by consumers for its first-rate customer service. Discuss how you would characterize Best Buy’s competitive strategy. Should it be classified as a low-cost provider, differentiation, or best-cost strategy? Explain your answer.

Answer 1

Kp = Kc(RT)
Kc=[NO2]^2 /[N2O4]

[N2O4] is unknown.
In the case when
the concentration [N2O4] is known, the constant will have the form

Kp
=[NO2]^2 /[N2O4] * (RT)
Kp=(0.01262)^2 /[N2O4] * 8.31*298