I think the answer is E
166. Because of the enormous research and development expenditures required to survive in the electronics industry, an industry marked by rapid innovation and volatile demand, such firms tend to be very large.
such firms must refer to specific firms mentioned earlier in the statement. So I guess it should be either B or E.
I checked the OG10
and it turns out that this question is taken from it.
The OA is B
Here is why E is wrong: In choice E, the illogical and awkward use of a prepositional phrase (for firms' survival)
buries the needed initial reference
to firms in a possessive modifier
(A) to survive
(B) of firms to survive
(C) for surviving
(D) for survival
(E) for firmsâ€™ survival