Answer (D) is correct . An opportunity cost is the cost of using a scarce resource for one purpose rather than another. The profit lost by applying a resource to a different product is one opportunity cost that must be considered.
Answer (A) is incorrect because The lost profits are opportunity costs, not out-of-pocket costs.
Answer (B) is incorrect because The lost profits are opportunity costs, not cannibalization charges.
Answer (C) is incorrect because The lost profits are opportunity costs, not replacement costs.
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