Step 1: Understand energy transfer in ecosystems.
In an ecosystem, energy is transferred from one trophic level to the next (e.g., from producers to consumers).
Step 2: Identify the nature of energy loss.
During this transfer, a significant amount of energy is lost as heat due to metabolic processes, making the quantity of energy available at higher trophic levels lower.
Step 3: Confirm the correct answer.
Energy decreases as it flows from one trophic level to the next due to energy loss in the form of heat. Therefore, the correct answer is (1).