Final answer:
Mom and Pop firms may survive without economic profits through covering operational costs, valuing non-monetary benefits, and the presence of barriers that keep larger competitors at bay.
Step-by-step explanation:
Small Mom and Pop firms, such as inner city grocery stores, can continue to operate without earning economic profits due to various reasons. Firstly, these businesses might cover their operational costs and provide a living for the owners, even though they don't generate extra profit. Secondly, the owners may value non-monetary benefits such as independence, community relationships, and personal fulfillment from running their firm. Lastly, there could be barriers to entry for larger competitors, which allows these small firms to survive in niche markets or in areas where larger stores cannot operate as efficiently.