Suppose that a firm wishes to dispose of 500000 shares


Suppose that a firm wishes to dispose of 500,000 shares. Table 1 summarizes the various bids for blocks of shares. In this auction, the lowest bid disposes all the shares. Suppose that the seller retains the right to accept any submitted price. If the objective is to maximize revenues, the seller will raise:

a. $15 million.

b. $14 million.

c. $16 million.

d. $26 million.

e. $13.5 million.

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Macroeconomics: Suppose that a firm wishes to dispose of 500000 shares
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