Which of the following is a reason why production capacity utilization began to decline around the end of World War I?
A. Financial markets were becoming less sophisticated.
B. Capacity had been decreased greatly for the war.
C. Financial markets placed more pressure on firms to continually increase sales volume and profits.
D. High entry barriers prevented new companies from entering into the market place.
E. Firms that had dominated their respective industries before the war maintained their positions due to lack of competition.
Answer: C
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