Refer to Figure 3.2. Wilma's dominant strategy is

How can a proprietorship or partnership raise funds for expansion?

A) borrow from someone or an institution willing to lend the funds B) reinvest profit back into the business C) take on a partner or more partners D) Any of these would generate funds for expansion.

Assuming the basic purpose is to raise additional revenue, should government levy an excise tax on cigarettes whose demand is highly inelastic or on a product whose demand is highly elastic? Are there any other reasons to levy such a tax?

What will be an ideal response?