The entry of an additional firm into a market decreases the profit per unit of output because entry decreases the price.

Think of examples of goods whose relative price has risen or fallen by a large amount

What will be an ideal response?

Economic growth is shown by

A) a point near the top of the production possibilities curve. B) a point outside the production possibilities curve. C) an inward shift of the production possibilities curve. D) an outward shift of the production possibilities curve.