Acompetitive firm produces output using three fixed factors and one variable factor. the firm's short run production function is q = 305x - 2x2; where x is the amount of variable factor used. the price of output is $2 per unit and the price of the variable factor is $10 per unit. in the short run, how many units of x should the firm use? (a) 37(b) 150(c) 21(d) 75(e) none of the above.

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%