Simplify 12⁴ × 12⁻⁶: Combining Positive and Negative Exponents

We begin by using the power rule of exponents; for the multiplication of terms with identical bases:

$a^m\cdot a^n=a^{m+n}$We apply it to the given problem:

$12^4\cdot12^{-6}=12^{4+(-6)}=12^{4-6}=12^{-2}$When in a first stage we apply the aforementioned rule and then simplify the subsequent expression in the exponent,

Next, we use the negative exponent rule:

$a^{-n}=\frac{1}{a^n}$We apply it to the expression that we obtained in the previous step:

$12^{-2}=\frac{1}{12^2}=\frac{1}{144}$Lastly we summarise the solution to the problem: $12^4\cdot12^{-6}=12^{-2} =\frac{1}{144}$Therefore, the correct answer is option A.