The reason why answer choice "C. prevent competitors from achieving a significant technological lead" would be the correct answer because if they keep improving their products, other companies that are competing with them are going to be prevented a lead in advancements because the firm already made those advancements.
Whenever a firm is making an advancement in their products, they're doing that in order to be more advanced than other firms. Even though they make advancements in their products to satisfy the customers, they also do this in order to be a step a head from other firms.
This makes competitors have a hard time to be known for making an advancement for their product, due to the fact that another firm already made that advancement.