Which of the following statements best reconciles the management's claim with the evidence on the expenditures associated with the development of Dendadrine? A. The pharmaceutical firm expects to be granted patent protection for Dendadrine; drugs under patent protection typically sell at prices that are approximately 10 times their variable costs. B. The development of some pharmaceutical products involves substantial initial expenditures on research, testing, and approval. C. In clinical tests, Dendadrine has proven far more effective at treating severe stomach disorders than any prior available treatments, without any serious side effects. D. No competitors are developing or planning to develop new medicines that might compete with Dendadrine in the marketplace. E. Millions of people suffer from severe stomach disorders, representing an estimated one to two billion dollars every year in revenue.