run (hint: use isoquants and isocosts to support your answer.) 7. (T/F) In a short-run perfectly competitive market of tomatoes, when P=$9, firm X produces 0 and firm Y produces 10 tons; when P=$10, firm X produces 5 tons and firm Y produces 15 tons. The following relationship must be true: $10 > (lowest point of AC in X) > (lowest point in AVC in X) > (lowest point in AC in Y) > $9 > (lowest point of AVC in Y) 8. (T/F) The diagram shows a Cost TO firm's total cost (TC), (dollars 400 - VC variable cost (VC), and year) fixed cost (FC) with 300 respect to its output. According to the graph, the 175 average cost (AC) equals 100 to marginal cost (MC) at FC output 7. 6 9 10 11 Output (units per year)