C. Energy is lost between each trophic level as heat.
As energy is transferred between trophic levels, some of it is lost as heat through respiration, digestion, and other metabolic processes. This loss of energy results in less energy being available for organisms at higher trophic levels, hence the decrease in energy at the top of the energy pyramid compared to the bottom. This phenomenon is known as the 10% rule, where only about 10% of the energy is transferred from one trophic level to the next.