Below, the graph on the left shows the short-run cost curves for a firm in a perfectly competitive market, and the graph on the right shows the current market conditions in this industry. In order to maximize profit, how much output should the firm produce?

If the opportunity cost of producing wheat in Canada is four buffalo and the opportunity cost of producing wheat in the U.S. is seven sheep then we know that

a. four buffalo must trade for seven sheep b. seven buffalo must trade for three sheep c. we have insufficient information to determine anything about their trade d. the U.S. should specialize in wheat e. Canada should specialize in wheat

If a firm's output equals 10, product price equals $5.00, TFC = $8.00, and TVC = $60.00, then AFC would equal

a. $.80 b. $1.00 c. $80.00 d. $2.00 e. $8.00