12. According to the passage, which of the following relationships
between profits and investments in research and development holds true
for producers of technologically advanced components?
(A) Modest investments are required and the profit margins on component sales are lowl.
(B) Modest investments are required but the profit margins on component sales are quite high.
(C) Despite the huge investments that are required, the profit margins on components sales are high.
(D) Because huge investments are required, the profit margins on component sales are low.
(E) Long-term contractual relationships with purchasers of components ensure a high ratio of profits to investment costs.
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