Problem 1-19 Filing Status and Tax Computation (LO 1.5) In the "Yes or No" column, select "Yes" if the filing status listed is available to unmarried individual taxpayers or "No" if it is not. Then, in the "Circumstance" column, select the circumstance under which the status can be used or select "Not applicable". a. Single b. Head of household c. Qualifying widow(er) Yes or No Circumstance

You are considering entry into a market in which there is currently only one producer (incumbent). If you enter, the incumbent can take one of two strategies, price low or price high. If he prices high, then you expect a $60K profit per year. If he prices low, then you expect $20K loss per year. You should enter if you believe demand is inelastic. you believe the probability that the incumbent will price low is greater than 0.75. you believe the probability that the incumbent will price low is less than 0.75. you believe the market size is growing.

If a company has discriminated against minorities in the past, should it be required to give priority to minority applicants today? Why or why not?

What are some ways a seller of labor (that is, someone looking for a job) might reassure a possible employer who is faced with imperfect information?

How can moral hazard lead to more costly insurance premiums than one was expected?

Furniture Forecasting Futura Furniture Products manufactures upscale office furniture for the Office of the Future. The sales division comprises regionally based sales offices made up of sales representatives and regional managers. Sales representativeswho report to the regional managersconduct direct sales efforts with customers in their regions. As part of the sales process, representatives gather information about likely future orders and convey that information back to the regional managers. Regional managers use that information to create sales forecasts, which are then used as the basis for manufacturing schedules. Sales representatives and regional managers are both compensated on a salary plus commission (percentage of revenue as pricing is centrally controlled). However, a regional managers commission is adjusted based on regional sales that exceed the forecasted budget. Corporate managers are concerned with one of Futuras key products, the DeskPod. They worry that DeskPod forecasts are inaccurate, causing extreme havoc in the manufacturing process. How are the forecasts likely to be inaccurate? What do you think is driving this inaccuracy? How might this problem be solved?