The licorice industry is competitive.The current market price of a string of licorice is $0.50.At this price, a firm decides to produce 2 million strings of licorice this month.The total fixed cost per month is $400,000 and the average variable cost of $0.40

1. What is the marginal cost of a string at 2 million strings of production level?
2. Assuming that one month is considered a short run, is the firm's decision to produce 2 million strings of licorice this month right or wrong?Explain the reason.