Final answer:
Home Depot's production model and cost structure allow it to offer competitive prices, while small Mom and Pop stores exist without economic profits possibly due to community service, owners' satisfaction, or unique offerings.
Step-by-step explanation:
The key point about Home Depot's operations and reach is the effectiveness of its production model and cost structure. By optimizing these aspects, Home Depot - much like Amazon, which is used as a point of comparison - can offer competitive pricing while still covering shipping costs. In contrast, small Mom and Pop firms, such as inner city grocery stores, may continue operating despite not earning economic profits for various reasons including fulfilling community needs, personal fulfillment of the owners, or providing niche products and services that are not available elsewhere.