Final answer:
The opportunity costs must be considered when a company at capacity is deciding whether to accept a special order that would displace regular customer sales, especially if all competitors charge the 'going rate' and there are market barriers.
Step-by-step explanation:
When considering a special order for a company that is already at capacity, it's essential to think about opportunity costs. If accepting a special order means giving up sales to regular customers, the company must consider the profits forgone from those regular sales that would be displaced. This is especially important in a competitive market where all firms charge the 'going rate' for their products or services.
If the company tries to charge more, customers have the option to switch to competitors, as is the case with agricultural growers. Similarly, market dynamics can be seen where an established airline might slash prices to crowd out a new entrant, then raise prices once it has retained its monopoly, as seen in scenarios where competition is aggressively managed.
Moreover, there are examples of market entry barriers, like the finite number of radio frequencies available for broadcasting, which can prevent new competitors from entering the market and thus influence pricing strategies and capacity considerations.