Firm producing slippers

You are the manager of a firm that produces slippers that sell for $20 a pair. you are producing 1200 pairs of slippers each month, at an average cost of $2 each. the marginal cost at a production level of 1200 is $3 per pair.a) are you making or losing money?b)will increasing production increase or decrease your average cost? your profit?c) would you recommend that production be increased or decreased?

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