NextGen Tech and ValueByte are two online retailers that sel…
NextGen Tech and ValueByte are two online retailers that sell refurbished laptops. NextGen Tech specializes in high-quality refurbished laptops, which customers value at $950. It costs NextGen Tech about $600 to purchase, refurbish, and sell each unit. ValueByte, on the other hand, sells lower-quality refurbished laptops. Customers value these lower-quality devices at only $450, and it costs ValueByte just $300 per unit to refurbish and sell. Customers cannot initially tell which seller offers better-quality products. As a result, they believe there’s a 35% chance of receiving a high-quality laptop from either seller. To signal its quality, the manager at NextGen Tech considers offering a warranty lasting t months. The expected cost of such a warranty is $15 per month for NextGen Tech. However, due to more frequent breakdowns and customer complaints, the same warranty would cost $35 per month for ValueByte to offer. What is the minimum number of months (t) of warranty that NextGen Tech would need to offer so that ValueByte would not find it profitable to mimic the offer?