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Division A of a firm produces a single product, which is sold only to Division B. Division A has a total investment of $1,000,000, while Division B has a total investment of $2,000,000. Division A annually sells 100,000 units of its product to Division B for $5 per unit and earns $150,000 in operating income. Division B currently earns $250,000. If Division A raises its selling price to $6 per unit and nothing else changes:
Fluid Intelligence
The capacity to reason and solve new problems independently of previously acquired knowledge.
Crystallized Intelligence
The ability to use skills, knowledge, and experience, often considered to improve with age.
Stereotype Threat
The risk of confirming negative stereotypes about one's group, which can hinder performance.
Intelligence Quotient
A score derived from standardized tests designed to assess human intelligence.
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