Liquidation of the corporation
What if the corporation distributed the cash to the shareholders and then liquidated? What would the tax consequences be to the parties upon liquidation of the corporation?
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Its ATC curve when K = K1 is given by ATC1 = Q2-4Q+6. The corresponding curve for K = K2 is ATC2 = Q2-8Q+18. What is this firm's LAC curve?
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