Question

Your best friend owns a small children's clothing store locatedin the downtown area of a community of 50,000 citizens. The business has been slow the past year due to the construction ofseveral new community?

Answer 1

Small 'Mom and Pop firms' like inner city grocery stores exist despite not earning economic profits due to unique products, personalized service, and community connections.

Step-by-step explanation:

Small 'Mom and Pop firms,' like inner city grocery stores, sometimes exist even though they do not earn economic profits due to various reasons:

1. Provide unique products or services that are not easily replicated by larger competitors.
2. Have a loyal customer base due to personalized customer service and community connection.
3. May be subsidized or operated more as a labor of love rather than a profit-driven venture.