Bay Center Implement, Co., the long-time sole dealer of farm machinery in Bay City, sells only "unreliable" tractors that frequently break down.

Bay Center Implement, Co., the long-time sole dealer of farm machinery in Bay City, sells only "unreliable" tractors that frequently break down. Having found a way of successfully selling high quality cars, Peter's Car Sales has just entered the machinery market to sell only "reliable" used tractors. The value of each of these kinds of tractors to a farmer and the wholesale cost of obtaining them are as follows:

Car Type Value to Farmer Wholesale Cost

Reliable $100,000