Answer:
A.It may decide against R & D projects of this sort
Step-by-step explanation:
Where there is market competition, such can present an avenue for a firm to discover new products/technology. Also, a firm could generate more profit because they are able to produce goods at a cheaper rate or produce products with certain features that suits customers needs. When a firm is innovative, it will have an edge over it's competitors in the mean time hence must have made enough profits before competitors catches up.
However, in a case where competition discourages technology as in the above case i.e a new firm copying the company's idea, the company may decide against R&D projects of this sort because if the research and development effort fails, the company may incur loss which could drive it out of business. Moreover, it means that the R&D on such product has not been successful since an identical product or a close substitute product can quickly be produced by it's competitors hence must be decided against to avoid them making losses.