Which of the following explains why the marginal cost curve has a U shape? A) Initially, the marginal product of labor falls, then rises. B) Initially, the marginal product of labor rises, then falls. C) Initially, the average cost of production rises, then falls. D) Initially, the average product of labor rises, then falls.

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?