Market Competition May Sometimes Encourage a Firm to Innovate Out

Market competition may sometimes encourage a firm to innovate out of fear because of the perception that

A) they will inevitably fall behind other competitors seeking out innovations.
B) the firm will only have a very temporary edge over its competitors.
C) the ability to earn above-normal profits is also available to its competition.
D) higher profits can only be earned by finding less expensive ways to produce.