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Preference dividends are subtracted from net income but not income from continuing operations in computing earnings per share.
Competitive Markets
Competitive markets are characterized by many buyers and sellers, where no single entity has the power to significantly influence prices for goods and services.
Economic Profits
Profits exceeding the total costs of inputs including opportunity costs, typically representing gains beyond the normal profit levels.
Economic Losses
Financial deficits incurred by businesses or individuals, often resulting from poor investment decisions or market downturns.
Profit-Seeking
The motivation or driving force behind individuals or companies to undertake activities that increase earnings and reduce costs, in order to maximize profits.
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