In east plant each machine can produce 5 units of gumhr or


LickIt Candy Company produces two types of candy: pops and gum. The company has two plants, East Plant and West Plant. In West Plant, each machine can produce 3 units of gum/hr or 2 units of pops/hr. In East Plant, each machine can produce 5 units of gum/hr or 1 unit of pops/hr. What is the marginal cost of producing 15 units of gum in East Plant? Which plant has a comparative advantage?

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Finance Basics: In east plant each machine can produce 5 units of gumhr or
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